Seoul: South Korea's envisioned passage of a special bill to support the country's massive investment pledge to the United States is expected to prevent U.S. President Donald Trump's tariff threat from being realized, the industry minister said Monday, vowing continued efforts to fend off Washington's trade pressure. "I think the top priority now is swiftly advancing the special U.S. investment bill through the parliament because that is what Trump thinks is the most important," Industry Minister Kim Jung-kwan said in a press briefing held about a week after he visited Washington for tariff consultations.
According to Yonhap News Agency, Kim highlighted that the U.S. cited the delay in the legislation of the special bill as its reason for raising tariffs, and the passage of the bill will likely lead to the suspension of plans to raise tariffs on Korea. The government's goal is to keep tariffs on Korean products at the current 15 percent level to safeguard national interests. Kim's trip to Washington followed Trump's announcement on social media that he would raise "reciprocal" tariffs and auto tariffs on Korea back to 25 percent, citing the legislative delay.
Kim reported having met with U.S. Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright, and other officials to resolve "unnecessary misunderstandings" between the two countries. Washington was reportedly frustrated over the delay in the legislative process of the special investment bill, expecting tangible outcomes on investment plans around December. The U.S. seems to have compared Korea's progress with that of Japan, which has been quicker in selecting U.S. investment projects, as Japan does not require similar legislation.
The minister expressed confidence in successfully conveying Korea's commitment to the trade deal, noting the absence of further actions by the U.S. since Trump's announcement. Lutnick "positively" assessed Korea's legislative plans, anticipated to be completed within the next month. Earlier in the day, the National Assembly established a special committee to handle the legislation of the bill.
Korea and the U.S. have also been discussing potential projects under the bilateral trade deal, though details remain undisclosed. Seoul has pledged a combined investment of US$350 billion in the U.S., with $200 billion earmarked for strategic industries and $150 billion for shipbuilding cooperation. Media reports suggest Korea's initial investment project will likely be energy-related, but the Ministry of Trade, Industry, and Resources declined to comment.
Regarding non-tariff issues, such as Korea's investigation into a data leak involving Coupang Inc., a U.S.-listed e-commerce firm, Kim stated the issue is not "directly" related to the tariff hike threat but is part of broader trade discussions. U.S. lawmakers and investors have accused Seoul of "discriminatory" actions against Coupang, raising concerns about its impact on tariff talks. Kim urged the U.S. to consider its response if a similar data leak occurred with an American company, noting the U.S.'s typically stricter stance on such matters.