Korean Minister of Trade, Industry and Energy Kim Jong-kwan stated that practical issues regarding the $200 billion investment project agreed upon in U.S.-Korea tariff negotiations are still being addressed, and he aims to continue discussions with U.S. officials with the goal of making an announcement by the end of this month.
Speaking to reporters on August 16 at Dulles International Airport near Washington, D.C., Kim said, "I mentioned that we are considering an announcement around the end of August or early September, but as we approach the final stages, various practical issues are emerging that need to be organized."
He added, "We have held video conferences and practical meetings, but it is necessary to consolidate everything. While more diverse issues are arising than we initially thought, we are determined to resolve them by the end of August."
This visit marks Kim's return to the U.S. after about three weeks. During this trip, he is expected to meet with key figures from the Trump administration, including U.S. Secretary of Commerce Howard Lutnick, to discuss the specific conditions of the investment project and tariff issues.
Last year, South Korea and the U.S. reached a trade agreement that included a $350 billion investment in the U.S., which reduced tariffs on South Korean products from 25% to 15%. Of the total investment, $150 billion is allocated for shipbuilding cooperation, while the remaining $200 billion is under negotiation for specific implementation plans.
Regarding speculation that the U.S. has pressured South Korea by suggesting it could raise tariffs if the investment is not expedited, Kim stated, "I am not aware of that; I have not received any such indication." However, he acknowledged that President Trump has been advocating for increased investment speed since early this year, and he expressed agreement with that sentiment, stating that discussions are ongoing.
On the possibility of additional tariffs from the U.S., Kim took a cautious stance. Following the imposition of a 12.5% tariff related to forced labor under Section 301 of the Trade Act last month, there are concerns that further tariffs could exceed the agreed 15% rate due to the results of an overproduction investigation.
Kim indicated that he would not make assumptions about whether the 15% tariff cap would be maintained after the overproduction investigation, stating, "We will do our best." He noted that the U.S. had mentioned discussing the results with South Korea around the end of August, but it seems to be taking longer than expected.
When asked if the combined cycle power generation sector remains a strong candidate for the first U.S. investment project, he replied, "Let's wait and see," adding, "We are monitoring the situation as initially discussed."
Addressing concerns about a potential gap in negotiations following the dismissal of Trade Negotiations Chief Ye Han-goo, Kim emphasized, "Negotiations are not conducted by individuals but by the entire organization together. We will do our utmost to ensure there is no gap."
* This article has been translated by AI.
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