Washington: South Korea's Finance Minister Koo Yun-cheol has pledged to make his "best" efforts to finalize a trade agreement with the United States. This commitment comes as Koo held discussions with U.S. Commerce Secretary Howard Lutnick in Washington for the second consecutive day, with a negotiation deadline looming this week.
According to Yonhap News Agency, South Korea is working to secure a deal with the Trump administration before the upcoming Friday deadline. If an agreement is not reached, "reciprocal" tariffs, including 25 percent duties on Korean goods, are expected to be enforced. Koo, who also serves as deputy prime minister for economic affairs, expressed his determination to Yonhap News Agency as he continued negotiations at the Commerce Department.
Joining Koo at the negotiation table were Industry Minister Kim Jung-kwan, Trade Minister Yeo Han-koo, and U.S. Trade Representative Jamieson Greer, as reported by the South Korean Embassy in Washington. The Wall Street Journal noted that Lutnick has urged Korean negotiators to present their "best and final" trade offer during these talks.
The urgency of the situation is underscored by a planned "two-plus-two" meeting involving Koo, Yeo, Treasury Secretary Scott Bessent, and Greer. South Korea is seeking to avoid or lessen the proposed 25 percent reciprocal tariffs, as well as specific duties on steel and automobiles, due to concerns about the potential impact on its export-driven economy.
To facilitate a breakthrough, Seoul officials have suggested a significant investment initiative called "Make American Shipbuilding Great Again (MASGA)." This proposal aligns with the Trump administration's goal to revitalize America's shipbuilding industry in response to China's dominant shipbuilding capacity.
South Korea's newly appointed Foreign Minister, Cho Hyun, is also set to visit Washington for discussions with Secretary of State Marco Rubio, as Seoul intensifies its efforts to reach a trade agreement. In parallel, prominent Korean business leaders, including Samsung Electronics Co. Chairman Lee Jae-yong, have traveled to Washington to support the negotiation efforts.
Hanwha Group Vice Chairman Kim Dong-kwan arrived in the U.S. earlier this week, and Lee followed suit a day later. Hyundai Motor Group Executive Chair Euisun Chung also plans to visit Washington shortly. If the MASGA proposal is accepted, Hanwha is expected to play a pivotal role, having acquired Philly Shipyard in Philadelphia last year, marking the first Korean entry into the U.S. shipbuilding sector.
There is speculation that Lee may propose expanding Samsung's semiconductor investments in the U.S., while Hyundai has already announced a significant plan to invest $21 billion in the U.S. by 2028.