Latest news with #JulyPackage
Korea Herald
11-05-2025
- Business
- Korea Herald
US top trade negotiator Greer to visit South Korea this week
The US Trump administration's top trade negotiator, Jamieson Greer, is set to visit South Korea this week for the first time since taking office, raising expectations of progress as tariff talks between the two countries are underway. Greer, the US Trade Representative, is scheduled to arrive here on Thursday for a two-day visit to attend the Asia-Pacific Economic Cooperation trade ministers meeting to be held on the southern Jeju Island, according to government officials on Sunday. During his visit, Greer is expected to hold talks with the Yoon Suk Yeol administration's Industry Minister Ahn Duk-geun or Trade Minister Cheong In-kyo, as well as other South Korean trade officials, on the sidelines of the APEC meeting. Greer's trip comes as the two allies are engaged in high-level talks on a wide range of trade issues, with Seoul seeking an exemption from major 'reciprocal" tariffs amounting to 25 percent, announced by US President Donald Trump on April 2 and paused on April 9 for three months. These tariffs are in addition to the 25 percent tariffs Trump imposed on steel and aluminum starting March 12, automobiles from April 3 and auto parts from May 3. His trip follows the '2+2' high-level talks held in Washington on April 24 between the two countries' finance and trade ministers. At that meeting, the two sides agreed to work out a so-called 'July Package,' a comprehensive deal aimed at eliminating US tariffs on Korean exports before July 8, when Trump's 90-day pause on his reciprocal tariffs ends. Last month, Trump announced unprecedented reciprocal tariffs on most trading countries. While some countries -- the EU, China, Canada --- have retaliated, others -- the UK, Mexico -- have attempted to negotiate. Working-level consultations have been ongoing, which have focused on a package deal that covers tariffs and nontariff barriers, economic security, investment cooperation and exchange rate policy. All eyes are on whether Greer's meetings in Korea will yield progress. The momentum has been reportedly slow, as Washington is currently engaged in talks with 18 major trading partners, with a focus on China and India. Observers say that Greer could lay out Washington's specific demands at the upcoming visit and coordinate a timeline for future working-level talks.
Korea Herald
02-05-2025
- Business
- Korea Herald
Economic leadership vacancy intensifies uncertainty in Korea
From US tariffs to supplementary budget, key policy agenda at risk as finance minister exits in political turmoil South Korea faces heightened economic uncertainty after Finance Minister Choi Sang-mok's abrupt resignation late Thursday, disrupting key policy initiatives that include imminent US tariff negotiations. Choi resigned Thursday night shortly after the main opposition Democratic Party of Korea filed his impeachment motion, with acting President Han Duck-soo — who had himself already announced his own resignation earlier in the day to be effective at midnight — accepting the resignation soon after. Choi's departure creates a major leadership vacuum, as he had been set to replace Han as acting president on Friday. Han resigned to launch a bid to formally drop "acting" from the title, ahead of the early June 3 presidential election. With both leaders gone, Education Minister Lee Ju-ho, third in line for national leadership, is serving as acting president until a new administration takes shape next month. First Vice Finance Minister Kim Beom-seok has assumed the role of acting finance minister, while concurrently serving as deputy prime minister for the economy. In place of Choi, Kim led a meeting with heads of major economic agencies and gathered senior Finance Ministry officials on Friday to address the crisis. 'All efforts should focus on safeguarding Korea's external credibility and minimizing the impact of tariff shocks, while ensuring prompt implementation of the supplementary budget to address urgent issues,' he said during the ministry meeting, pledging to operate an emergency response system to ensure market stability. Choi's resignation casts a shadow over Korea's high-stakes trade negotiations with the US. Choi and Trade Minister Ahn Duk-geun met last month in Washington with their US Treasury and Trade Representative counterparts for a '2+2' dialogue — a high-level format to address rising tariff tensions. Both sides agreed to continue working-level talks to finalize a 'July Package' by July 8, the expiration of a 90-day US tariff grace period. Ahn and US Trade Representative Jamieson Greer are set to meet next during the May 15-16 Asia-Pacific Economic Cooperation trade ministers' summit on Jeju Island. While Choi's sudden departure raises concerns about Seoul's leadership in the talks, the Korean government stated that the "2+2" discussions will remain largely unaffected. 'The first meeting, where top finance and trade officials from the US and Korea attended, was exceptional, made possible by the coincidence of Choi and Ahn being in Washington at the same time,' an official from the Finance Ministry told The Korea Herald, adding that a follow-up ministerial-level meeting involving Choi had not been planned. 'As the framework for future talks was established then, each ministry will continue negotiations with their counterparts at the working level,' the official said. Meanwhile, Korea's Trade Ministry is moving forward with technical-level talks. On Thursday, Trade Policy Director General Chang Sung-gil met with US officials in Washington. While no outcome was disclosed, reports suggest the meeting aimed to set the stage for formal negotiations. The dual-track talks also included discussions between Korea's Finance Ministry and the US Treasury on currency policies, but the ministry stated that these matters were confidential. Exports are starting to feel the pressure. Outbound shipments to the US fell 3.7 percent in April, despite overall export growth, government data shows. The Export-Import Bank of Korea reported a 2.1 percent on-year drop in first-quarter exports, adding that the real impact will hit in the second quarter, with exports expected to fall 6-7 percent. Korea's landmark nuclear export deal with the Czech Republic is also being overshadowed, with leadership turmoil occurring just days before its expected signing. On Wednesday, a Korean consortium led by Korea Hydro & Nuclear Power is set to finalize an $18 billion deal with Prague to build two nuclear reactors in Dukovany, southern Czech Republic. The project would mark Korea's first nuclear reactor export in 16 years and its debut in Europe's atomic market. The sudden resignation of Choi, who had been expected to attend the signing as acting president, has left the composition of Korea's delegation in question. His participation had been anticipated, following the precedent set by former President Yoon Suk Yeol's visit to Prague in September after KHNP was named the preferred bidder for the Dukovany project. Leadership for the strategic export push now falls to acting President Lee, who may join the delegation in Choi's place. Trade Minister Ahn and KHNP CEO Whang Joo-ho are confirmed to attend. Reports suggest the presence — or absence — of Korea's top leadership could affect not only the final terms of the Dukovany deal, but also Seoul's chances of securing future contracts, including the right of first offer for another reactor project in Temelin, in the Czech Republic's South Bohemian region. Execution of extra budget The 13.8 trillion won ($9.8 billion) supplementary budget for disaster response and economic revitalization cannot afford delays amid the ongoing political turmoil. The National Assembly approved the extra budget Thursday, adding 1.6 trillion won to the government's original 12.2 trillion won proposal. This marks the first supplementary budget passed this year and is seen as crucial to stimulating the slowing economy. 'The supplementary budget hinges on speed more than anything,' acting President Lee Ju-ho said during his first Cabinet meeting Friday. The funds will be allocated across three major sectors: over 3 trillion won for disaster recovery, including reconstruction in North Gyeongsang Province following March's deadly wildfire; about 4.5 trillion won for trade and artificial intelligence-related initiatives, including measures to buffer the impact of US tariff shocks; and more than 5 trillion won for the broader support of livelihoods and economic stability amid inflation and sluggish growth. Meanwhile, Korea's growth has stalled, weighed down by external and internal risks, with gross domestic product contracting 0.2 percent in the first quarter this year from the prior quarter, with a 1 percent expansion forecast for the year.
The Star
26-04-2025
- Business
- The Star
Seoul, Washington lay groundwork for tariff relief deal by July
SEOUL: South Korea and the US have agreed to work toward a 'July Package," a comprehensive package deal aimed at eliminating US tariffs on Korean exports before July 8, when the 90-day grace period on US "reciprocal tariffs" expires, according to Korea's top officials on Friday (April 25). The agreement came during a '2+2' trade meeting in Washington on Thursday, between South Korean Deputy Prime Minister and Finance Minister Choi Sang-mok, Industry Minister Ahn Duk-geun and their US counterparts, Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. The meeting was held at the US Department of the Treasury in Washington DC, lasting for a total of 1 hour and 8 minutes to conclude at 10.18am. At a press conference with Korean reporters following the bilateral meeting, Choi confirmed that both sides agreed to focus their discussions on four main areas: tariffs and non-tariff barriers, economic security, investment cooperation and exchange rate policy. 'The meeting helped narrow down the agenda and build consensus on a schedule, effectively establishing the framework for the negotiations,' Choi said. "We explained the various domestic considerations that could affect the negotiations and asked for the US' understanding, including the country's political schedule, trade-related laws and the need for coordination with the National Assembly." With Korea set to hold a presidential election on June 3 following the impeachment of former President Yoon Suk Yeol earlier this month, the government is expected to finalize the agreement package after the new administration takes office. The Korean ministers said they delivered their commitment to cooperation on key US interests, including trade investment, shipbuilding and energy. Ahn also said he requested the removal of reciprocal tariffs and item-specific tariffs on automobiles and steel in a separate meeting held with Greer. US President Donald Trump implemented a 25 percent tariff on steel and aluminum starting March 12. On April 3, a 25 percent tariff on foreign automobiles took effect, with tariffs on auto parts scheduled to begin on May 3. "Through this meeting, Korea and the US reached a basic agreement on the framework for future negotiations," Ahn said, noting that they agreed to form multiple working groups to facilitate future talks. Once working-level talks begin next week, the two sides will determine the scope of issues to be included in the July Package, Ahn added. Regarding Bessent's comment that "South Korea brought its A-game and we will be watching to see if it follows through," Ahn suggested that the remark likely reflected the consensus formed around Korea's proposal for cooperation in the shipbuilding sector. Before the ministers' press conference, Bessent had said the trade talks with Korea were "very successful." Additional high-level talks are scheduled with Greer, who will visit Korea for the APEC Trade Ministers' Meeting in Seoul May 15-16. On April 2, Trump also signed an executive order imposing a 10 percent base tariff on all trading partners, with an additional country-specific tariff ranging from 10 percent to 50 percent. The total reciprocal tariff of 25 percent was imposed on Korea, but has been granted a 90-day grace period. Meanwhile, the talks did not cover the issues of renegotiating defence cost-sharing, or the existing free trade agreement. With a boost in sentiment following the tariff negotiation, the Korean won opened slightly stronger against the US dollar on Friday. In the Seoul foreign exchange market, the won-dollar exchange rate started the day at 1,432.0 won per dollar, down 3.0 won from the previous session's close. The Kospi also opened slightly higher at 2,544, supported by foreign and institutional buying. Gains in shipbuilding stocks like HD Hyundai Heavy Industries and Hanwha Ocean, along with strong performances in petrochemical shares like Aekyung Chemical and Hanwha Solutions, helped lift the index. As of 2.30pm Friday, HHI was trading at 400,000 won ($278), up 6.38 percent from the previous day's close. Shares of HD Korea Shipbuilding & Offshore Engineering were at 264,500 won, up 6.01 percent, while Hanwha Ocean was trading at 89,000 won, marking a 10 percent gain. Aekyung Chemical's shares also soared, jumping 29.99 percent to 10,350 won. - The Korea Herald/ANN
Korea Herald
25-04-2025
- Business
- Korea Herald
Seoul, Washington lay groundwork for tariff relief deal by July
Kospi, won edge up amid hopes for breakthrough in tariff talks with US South Korea and the US have agreed to work toward a 'July Package," a comprehensive package deal aimed at eliminating US tariffs on Korean exports before July 8, when the 90-day grace period on US "reciprocal tariffs" expires, according to Korea's top officials on Friday. The agreement came during a '2+2' trade meeting in Washington on Thursday, between South Korean Deputy Prime Minister and Finance Minister Choi Sang-mok, Industry Minister Ahn Duk-geun and their US counterparts, Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. The meeting was held at the US Department of the Treasury in Washington DC, lasting for a total of 1 hour and 8 minutes to conclude at 10:18 a.m. At a press conference with Korean reporters following the bilateral meeting, Choi confirmed that both sides agreed to focus their discussions on four main areas: tariffs and non-tariff barriers, economic security, investment cooperation and exchange rate policy. 'The meeting helped narrow down the agenda and build consensus on a schedule, effectively establishing the framework for the negotiations,' Choi said. "We explained the various domestic considerations that could affect the negotiations and asked for the US' understanding, including the country's political schedule, trade-related laws and the need for coordination with the National Assembly." With Korea set to hold a presidential election on June 3 following the impeachment of former President Yoon Suk Yeol earlier this month, the government is expected to finalize the agreement package after the new administration takes office. The Korean ministers said they delivered their commitment to cooperation on key US interests, including trade investment, shipbuilding and energy. Ahn also said he requested the removal of reciprocal tariffs and item-specific tariffs on automobiles and steel in a separate meeting held with Greer. US President Donald Trump implemented a 25 percent tariff on steel and aluminum starting March 12. On April 3, a 25 percent tariff on foreign automobiles took effect, with tariffs on auto parts scheduled to begin on May 3. "Through this meeting, Korea and the US reached a basic agreement on the framework for future negotiations," Ahn said, noting that they agreed to form multiple working groups to facilitate future talks. Once working-level talks begin next week, the two sides will determine the scope of issues to be included in the July Package, Ahn added. Regarding Bessent's comment that "South Korea brought its A-game and we will be watching to see if it follows through," Ahn suggested that the remark likely reflected the consensus formed around Korea's proposal for cooperation in the shipbuilding sector. Before the ministers' press conference, Bessent had said the trade talks with Korea were "very successful." Additional high-level talks are scheduled with Greer, who will visit Korea for the APEC Trade Ministers' Meeting in Seoul May 15-16. On April 2, Trump also signed an executive order imposing a 10 percent base tariff on all trading partners, with an additional country-specific tariff ranging from 10 percent to 50 percent. The total reciprocal tariff of 25 percent was imposed on Korea, but has been granted a 90-day grace period. Meanwhile, the talks did not cover the issues of renegotiating defense cost-sharing, or the existing free trade agreement. With a boost in sentiment following the tariff negotiation, the Korean won opened slightly stronger against the US dollar on Friday. In the Seoul foreign exchange market, the won-dollar exchange rate started the day at 1,432.0 won per dollar, down 3.0 won from the previous session's close. The Kospi also opened slightly higher at 2,544, supported by foreign and institutional buying. Gains in shipbuilding stocks like HD Hyundai Heavy Industries and Hanwha Ocean, along with strong performances in petrochemical shares like Aekyung Chemical and Hanwha Solutions, helped lift the index. As of 2:30 p.m. Friday, HHI was trading at 400,000 won ($278), up 6.38 percent from the previous day's close. Shares of HD Korea Shipbuilding & Offshore Engineering were at 264,500 won, up 6.01 percent, while Hanwha Ocean was trading at 89,000 won, marking a 10 percent gain.
