South Korea to scrutinise US-Japan trade deal as officials fly to Washington
As Japan competes with South Korea in areas such as autos and steel, Tokyo's trade deal will pile pressure on Seoul to reach a similar level of 15 per cent.
SEOUL - South Korea will take a close look at the terms of a US-Japan trade deal, its industry minister said on July 23, holding out the prospect of greater cooperation in the energy and industrial sectors ahead of key trade talks in Washington.
Japan competes with South Korea in areas such as autos and steel, so
Tokyo's trade deal will pile pressure on Seoul to reach a similar level of 15 per cent, or better, by an Aug 1 deadline to avert reciprocal US tariffs of 25 per cent.
The new finance ministry and the top trade envoy of Asia's fourth-biggest economy are set for high-level trade talks with US counterparts in Washington on July 25.
'Investors see the Japan-US deal as a benchmark for the Korean deal,' said Mr Kim Sung-rae, an analyst at Hanwha Investment and Securities.
'The deal would put pressure on Korean negotiators to come up with a similar or better deal,' he added.
South Korea's benchmark Kospi index edged down 0.3 per cent on July 23, but shares in automakers and suppliers rallied after the Japan-US deal. Hyundai Motor rose 6.8 per cent and Kia jumped 6.4 per cent.
New President Lee Jae-myung has said Seoul wanted to avoid a comparative disadvantage with other countries in trade deals.
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'It will be difficult for South Korea to have US tariff rates lower than 15 per cent on Japan and 10 per cent on Britain,' said Dr Kim Yong-jin, a management professor at Sogang University.
Seoul needed to import more farm goods and energy, as well as boost investments, as Japan had done to reach a similar outcome, he added.
South Korea will exclude the opening up of its rice and beef markets as a bargaining chip in the Washington talks, instead considering more US imports of crops for fuel, such as corn for bioethanol, the Yonhap News Agency said.
'We will make an all-out effort to produce a positive sum result that will allow Korea-US industrial and energy cooperation to be upgraded to the next level,' South Korea's Industry Minister Kim Jung-kwan said in a statement.
Since the result could have a significant economic impact, South Korea would respond thoroughly while closely considering the sensitivity of its industry, he added.
Mr Kim will meet US Commerce Secretary Howard Lutnick and Energy Secretary Chris Wright, among others, he told reporters before boarding a plane to Washington for the talks.
In a post on Truth Social, US President Donald Trump said Japan would boost market access for American producers of cars, trucks, rice and certain agricultural products, among others.
The deal's tariff of 15 per cent on all Japanese imports is down from a proposed 25 per cent, with Mr Trump adding that it would include US$550 billion (S$703 billion) of Japanese investments in the United States.
Last week, South Korea's Chosun Ilbo newspaper said the United States in July had asked Seoul in talks to set up a large-scale investment fund to support the reconstruction of its manufacturing industry, without identifying a clear source. REUTERS
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Straits Times
39 minutes ago
- Straits Times
SG60 F&B icons: Honouring 14 heritage brands that have never lost their charm
Find out what's new on ST website and app. Brothers Alvin (left) and Allan Choo are the fifth generation of Choos to run Kwong Cheong Thye. SINGAPORE – The nation may be celebrating its 60th anniversary in 2025 , but there are some home-grown brands which are even older than it. Trusted kitchen staple SCS Butter turns 120, while Singapore Zam Zam, one of the oldest restaurants in Singapore , marks 117 years. Familiar household names such as Lam Soon, Old Chang Kee, Samy's Curry and Yeo's have stood the test of time to become heritage brands. In this third instalment of ST Food's four-part SG60 weekly series, The Straits Times shines the spotlight on 14 of them . Find out how these brands, trendsetters in their own ways, continue to thrive and stay relevant in the F&B landscape. The series kicked off on July 13 with 20 beloved dishes and drinks, followed by 14 laudable food and beverage brands last week. 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The extensive menu – with dishes traditionally served on banana leaves – includes dosai, idly, tantalising thali meals and tandoori specials. Komala Vilas' rice meal. PHOTO: LIANHE ZAOBAO FILE In 2015, it made history with a visit from Indian Prime Minister Narendra Modi, who savoured idly, vadai and dosai there with Singapore's then Prime Minister Lee Hsien Loong and his wife Ho Ching. It weathered the Covid-19 pandemic, but shuttered a few outlets over the past few years because of manpower shortages. However, it remains poised to continue the family legacy, with third-generation owner Rajakumar Gunasekaran fronting the business. Kwong Cheong Thye Kwong Cheong Thye's soya sauces. PHOTO: KWONG CHEONG THYE Chefs swear by its soya sauce. Peek into the kitchens of Singapore's top hotels and restaurants – including Peach Blossoms at Parkroyal Collection Marina Bay and Summer Pavilion at The Ritz-Carlton, Millenia Singapore – and, chances are, they are using Kwong Cheong Thye's sauces. This home-grown Singapore brand got its start in 1892. Founder Choo Cheong Chan left Jiangmen in Guangdong province, China, and came here for better opportunities. He set up Kwong Cheong Thye in Jalan Sultan, making soya sauce for food suppliers. Today, the sauce, which is fermented for six months, is brewed in its factory in Senoko Avenue. Mr Alvin Choo, 31, and Mr Allan Choo, 30, are the fifth generation of Choos running the business. Brothers Allan (left) and Alvin Choo are the fifth generation of Choos to run Kwong Cheong Thye. PHOTO: ST FILE They are growing it. Soon, a facility in Senoko Crescent will open and it will be used to make just soya sauce. The current factory will produce the brand's other sauces, including oyster, chicken rice, chilli crab and black pepper crab sauces. Some 80 per cent of its business is supplying to trade – top hotels and restaurants here and abroad use its products. About half its sauces are exported overseas to Australia, China, Japan, the United Arab Emirates, Britain and countries in this region. Kwong Cheong Thye, which has retail shops in Geylang and at Jewel Changi Airport, also produces fresh and dried noodles under its My Noodle brand, and makes mooncake paste. Lam Soon Knife cooking oil is produced by Singapore brand Lam Soon. ST PHOTO: KUA CHEE SIONG You will not have to look hard in your home to find a Lam Soon product. Knife and Naturel cooking oil, UFC Refresh Coconut Water, UFC canned pineapple, bio-home laundry detergent, and NooTrees toilet paper and tissues are all produced by this Singapore brand. Founder Ng Keng Soon came to Singapore from Xiamen, China, and started Lam Soon Cannery in 1929. He named the company Lam Soon, using the Hokkien word for 'south' – as Singapore was then considered part of the Southern Seas – and part of his name. He started off producing soya sauce, and after World War II, expanded the range of products to include canned food, cooking oil, coffee and laundry soap. The company operates in Singapore, Malaysia, Thailand and Vietnam, and exports its wares to more than 50 countries. Over the decades, it has kept up with consumer needs and preferences. When people became more health-conscious, it introduced the Naturel brand of organic olive oil from Spain. It also sources products from overseas, such as organic pasta from Italy, organic brown and red rice from Thailand, and sesame oil from Japan, and markets them under its brands. Lana Cakes Chocolate fudge cake from Lana Cakes. PHOTO: ST FILE Many Singaporeans have grown up with one default birthday cake – Lana Cake. You know, the chocolate sponge cake covered with shiny chocolate fudge? Yes, that's the one. Mrs Violet Kwan, 97, started baking her famous cakes in 1964. Her sister-in-law Lani was visiting from Hawaii and taught her to make blueberry, orange and chocolate cakes. Mrs Kwan's friends loved them and she started a home business. In 1975, she opened her shop in Greenwood Avenue, where it still stands. Her son Jason Kwan, 59, gave up his job as a banker in Tokyo to run the business and preserve her legacy. Lana Cakes founder Violet Kwan and her son Jason Kwan, who now runs the business. PHOTO: ST FILE What makes that cake so special? Why do long queues form just to order it? Why is the kitchen run off its feet during festive seasons? The secret might lie in the lightness of the sponge cake and the jelly-like texture of its chocolate fudge frosting. Each cake is baked from scratch and frosted by hand in a not-very-big kitchen. Of course, Lana sells more than just chocolate fudge cake. 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The halal-certified chain's snacks include fishballs, chicken wings, carrot cake and nuggets. And, particularly with its iconic curry puff, the brand has always stayed on trend. It has featured bold flavours from nasi lemak to durian to its recent chicken rendang-filled Camo Puff, wrapped in a striking camouflage-patterned pastry in celebration of SAF Day. Now, in honour of SG60, its popular Chilli Crab'O puff returns – complete with red and white hued pastry and actual crab meat. Adding to the occasion is Soft Shell Crab Tempura with Mantous in a cup. Both are available till Aug 10. The listed company – which marks its 70th anniversary in 2026 – runs more than 70 outlets islandwide and more than 100 outlets globally, with branches in Malaysia, Indonesia and Britain. It also operates casual chain Curry Times, as well as a catering arm and food truck for events. Want Old Chang Kee even closer to home? 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Business Times
39 minutes ago
- Business Times
American Airlines' new Airbus jet grounded by supply chain issue
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Straits Times
2 hours ago
- Straits Times
Hackers hit a US app called Tea, where women review men they've dated
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