South Korea officials to meet US commerce secretary again for tariff talks

Reuters

2 days ago

SEOUL, July 25 (Reuters) - South Korea's Industry Minister Kim Jung-kwan and top trade envoy Yeo Han-koo will meet U.S. Commerce Secretary Howard Lutnick in Washington again on Friday in a bid to move closer to a deal on tariffs, South Korea's presidential office said.
The three met on Thursday and reaffirmed their commitment to reach a deal on tariffs by the August 1 deadline, said Kim Yong-beom, policy chief of the South Korean presidential office.
During the meeting in Washington, they discussed the importance of cooperation on strategic manufacturing sectors such as shipbuilding and chips and agreed to draw up a "mutually beneficial" agreement, the policy chief told a briefing.
"Our side emphasized the importance of manufacturing cooperation between the two countries and strongly requested the United States to ease tariffs on individual items such as automobiles and reciprocal tariffs," he said.
Industry minister Kim and trade minister Yeo have been in Washington amid intense efforts by Seoul to reach a deal, which an official said were at the "critical final phase."
Kim earlier met U.S. Energy Secretary Chris Wright and Yeo planned to hold talks with U.S. Trade Representative Jamieson Greer, the industry ministry said.
Pressure on South Korea heightened this week after Japan clinched a deal with the United States, which U.S. President Donald Trump said would see Tokyo allowing greater market access for American products including autos and some agricultural products.
South Korea's agricultural sector was part of the latest negotiations, according to the presidential office. The sector is important due to opposition from both farmers and the broader public to agricultural imports, amid concerns about food security and protection of the local farming community.
Lutnick indicated U.S. officials were fully aware of the urgency felt by South Korean officials to get a deal, especially after Trump announced the agreement with Japan.
"You can hear the expletives out of Korea when they read the Japanese deal," Lutnick said on CNBC on Thursday ahead of his meeting with Kim.
"They very, very much want to make a deal," he said, referring to South Korea.
Some top Seoul officials thrown into the high-stakes negotiations have been in their jobs for less than a week after new President Lee Jae Myung only recently completed his cabinet lineup.
South Korea and Japan compete in areas such as autos and steel, and Japan's deal was seen by investors as a benchmark for the type of agreement Seoul should target in negotiations, analysts have said.
In a blow to efforts to reach a deal, South Korea's Finance Minister Koo Yun-cheol's plan to meet U.S. Treasury Secretary Scott Bessent on Friday was postponed.
The South Korean side said they were informed about the cancellation only 90 minutes before Koo was set to depart for Washington on Thursday, with the U.S. attributing the move to a scheduling conflict for Bessent.
Seoul will propose to Washington an investment package plan worth at least $100 billion, which would involve major South Korean conglomerates like Samsung and Hyundai Motor Group, the Yonhap News Agency has reported.
President Lee met Samsung Electronics Chairman Jay Y. Lee on Thursday and has also held talks with other business leaders, including the heads of SK Hynix, Hyundai Motor and the LG conglomerate to discuss global trade and investing in the U.S., his office said.
South Korean companies are expected to be partners of the government in any investment package offered to the United States. Japan pledged a $550 billion package of investment and loans as part of its trade deal, which Lutnick said would be used "at Donald Trump's discretion."
In an apparent move to calm concerns about South Korea failing to reach a deal, presidential officials in Seoul said talks were still under way "to the maximum extent possible".