2 days ago
Battle-tested duo leads Seoul into high-stakes tariff talks with Washington
"Korea is back," says new Trade Minister Yeo Han-koo, pledging swift action on US tariff talks
With the July deadline for the US tariff reprieve approaching, South Korea is ramping up preparations for make-or-break tariff negotiations, placing two seasoned negotiators at the forefront in a bid to deliver a breakthrough.
Described by many observers as one of the most qualified experts, Yeo Han-koo, who most recently served as a senior fellow at the Peterson Institute for International Economics in Washington, took office as the new trade minister on Thursday.
This marks his second time serving as Korea's top trade envoy, following his previous tenure during the Moon Jae-in administration from 2021 to 2022. In 30 years of public service, Yeo has sat at the bargaining table for numerous trade deals, including the Regional Comprehensive Economic Partnership, the Korea-EU FTA, and others.
Backing Yeo is Kim Hyun-chong, deputy national security adviser under the Moon administration and a two-time trade minister. He is widely expected to be named special adviser to the president for foreign affairs and national security. In this advisory role, Kim is expected to leverage his extensive trade expertise while providing the president with broader strategic insights.
During President Lee Jae-myung's campaign, Kim served as an adviser on foreign affairs and national security. In May, he visited Washington to meet with Trump officials to discuss tariff and trade-related issues.
Known for a candid and straightforward style, Kim played a pivotal role in negotiating South Korea's free trade agreements with over 40 countries during the Roh Moo-hyun administration. He served again as a chief trade negotiator under Moon, further cementing his reputation as a skilled diplomatic negotiator.
The two men previously worked closely together during the renegotiation of the Korea-US FTA and steel tariffs during the first Trump administration, with Kim as trade minister and Yeo as commercial attache at the Korean Embassy in Washington. At that time, Korea was able to secure a duty-free import quota for steel products, receiving exemptions from US steel tariffs.
Given the duo's track record and deep ties in Washington, expectations are high that Seoul could bolster its negotiating power and break the deadlock in tariff talks, which have been moving slowly due to a leadership vacuum in Korea.
There's not much time before the July 8 deadline. The Trump administration imposed 25 percent 'reciprocal' tariffs on all imports from South Korea in April. Unless a new trade deal is reached, tariffs will jump from the current 10 percent to 25 percent when the 90-day grace period expires, which will deal a blow to the export-dependent South Korean economy.
In light of this urgency, Yeo, at his inauguration ceremony held at the government complex in Sejong on Thursday, said he will 'expedite the 'shuttle negotiations' with the US at the trade minister level," noting that the new government in Seoul has secured democratic legitimacy and a clear mandate.
He added that the ministry will establish an all-out response system for trade negotiations with the US, expanding and restructuring the existing task force to encompass trade, industry and energy issues. The rank of Korea's working-level representative will also be elevated from the current director level to the deputy minister level.
Through this effort, the government will 'establish a new structural framework for mutually beneficial Korea-US cooperation in industry, trade and investment over the next five years,' Yeo said.
'I will do my best to achieve a nation-oriented, pragmatic outcome in trade talks,' he added.
"Korea is back," said Yeo, striking a confident tone. "As much as South Korea needs the US, the US also needs Korea. We will negotiate confidently to build a mutually beneficial partnership."
Negotiations are expected to intensify in the coming weeks, with a third round of technical talks expected this month. These talks are set to address issues including trade imbalances and non-tariff barriers.
Seoul has been pushing for reduced tariff rates or exemptions through a comprehensive deal covering both tariffs and broader economic cooperation. Compounding the tariff issue, non-tariff barriers have emerged as a key sticking point in the bilateral talks.
The US Trade Representative has particularly flagged Korea's restrictions on imports of US beef from cattle over 30 months old and regulations on the overseas transfer of high-precision mapping data.
In preparing for the negotiations, the industry ministry has commissioned a state-run think tank to conduct economic impact studies analyzing the effects of the tariffs and anticipated US demands.
