Korean Minister of Trade, Industry and Energy Kim Jong-kwan is visiting the United States to address the ongoing investigation under Trade Act Section 301 and to advance strategic investment projects. As the deadline for the U.S. to conclude its global tariff imposition approaches, discussions on how to respond are intensifying. There is particular interest in finding solutions related to investments in the U.S.
According to the Ministry of Trade, Industry and Energy, Kim will be in Washington, D.C., from July 22 to July 25 to discuss trade and investment issues between South Korea and the U.S. During his visit, he is scheduled to meet with U.S. Secretary of Commerce Howard Rutnik to discuss key matters, including strategic investments.
The meeting is expected to address the investigation being conducted by the Office of the U.S. Trade Representative (USTR) into South Korea under Trade Act Section 301. The South Korean government plans to explain that its manufacturing production and support policies do not unfairly harm U.S. companies and will seek to persuade the U.S. not to impose additional tariffs based on the investigation's findings.
In March, the USTR initiated an investigation into 'structural overcapacity' affecting South Korea, China, Japan, the European Union, and 12 other economies. Industries potentially affected include steel, automobiles, batteries, chemicals, semiconductors, machinery, shipbuilding, and solar energy. The USTR is examining whether foreign government subsidies and policy financing artificially inflate production capacity and restrict U.S. commerce.
Given that South Korea has a high export ratio to the U.S. in key industries, the imposition of Section 301 tariffs would pose a significant burden. There is also a possibility that these tariffs could be layered on top of existing tariffs, potentially diminishing price competitiveness in the U.S. market.
Additionally, a separate Section 301 investigation concerning products made with forced labor will also be discussed. In June, the USTR determined that South Korea and 60 other economies had not sufficiently banned the import of goods produced with forced labor and proposed additional tariffs. Public hearings on the potential tariffs were held from July 7 to July 9, with a proposed tariff rate of 12.5% for South Korea.
Kim will also meet with U.S. officials, including Secretary of Energy Chris Wright, to discuss strengthening cooperation in the resource and energy sectors. He plans to engage with members of the U.S. Congress to emphasize the importance of South Korea's investments in the U.S. and the bilateral trade cooperation.
On July 23, Kim will attend the opening ceremony of the Korea-U.S. Shipbuilding Cooperation Center, which will be attended by key figures from both countries and shipbuilding companies. This center is a follow-up to the memorandum of understanding (MOU) signed in May between the Ministry of Trade, Industry and Energy and the U.S. Department of Commerce, aimed at discovering and supporting collaborative projects between shipbuilding companies in both nations.
Kim stated, "We are actively working to advance strategic investment projects in the U.S. under the Korea-U.S. Strategic Investment Special Act. Through this visit, we aim to clarify the direction of these investment projects and ensure the smooth implementation of the Korea-U.S. tariff agreement to maintain stable trade relations between the two countries."
* This article has been translated by AI.
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