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Korea Herald
14-05-2025
- Business
- Korea Herald
Expert notes need for S. Korea to persuade China not to create conflict in Taiwan Strait
A security expert in the United States underscored the need Tuesday for Seoul to make diplomatic efforts to persuade China not to cause conflict in the Taiwan Strait, noting that it would be increasingly difficult for South Korea to avoid getting involved in a potential Taiwan contingency. Ellen Kim, director of academic programs at the Washington-based Korea Economic Institute of America, made the remarks, calling attention to the potential role of the 28,500-strong US Forces Koreain a contingency, which could draw South Korea into a potential Taiwan-related conflict. "My personal view is that increasingly, it's going to be very difficult for South Korea to be trying to avoid contingency," she said during a press meeting. "South Korea should try to make diplomatic efforts to avoid the war happening, and try to make a diplomatic persuasion toward China not to create conflict in the Taiwan Strait, which is sending a clear signal that having conflict is bad for China," she added. She predicted that although Seoul does not want to get entangled in the Taiwan issue, it could be drawn into a contingency should USFK forces be mobilized in the event of a crisis. "South Korea does have USFK troops, and that really becomes a major factor for China because if USFK forces come in support of Taiwan, that becomes a threat to China," she said. "If China considers that US forces are going to be attacking China, then South Korea will automatically join the conflict," she added. Kim highlighted the need for South Korea to think through how to respond to Taiwan Strait issues as they are no longer "local" ones. South Korea has been reluctant to openly discuss any role in the event of Taiwan Strait contingencies as it seeks to avoid tension with China, a key trading partner for Asia's fourth largest economy. But in recent years, it has taken on a clearer position, as it stated support for peace and stability in the Taiwan Strait in public documents. Meanwhile, Scott Snyder, the president and CEO at the KEI, cast ongoing trade talks between Seoul and Washington as an effort to "reconfigure" the bilateral trade relationship, while anticipating that the allies will also discuss how to "reconfigure" the defense and security relationship. He stressed that the reconfiguration process will not necessarily be in the form of "unilateral demands or requests" from the US side. "Because both sides bring something to the table in the defense security relationship and there are a lot of different ways to approach a reconfiguration of that approach," Snyder said. Snyder also pointed out a policy shift under the second Trump administration. "Basically, we've moved from offering carrots in the form of subsidies to threatening sticks in the form of tariffs," he said, drawing comparison with a policy approach of the former Biden administration. "I think that's what the South Korean companies are having to grapple with." South Korea and the US have been in talks over tariff- and non-tariff measures, investment cooperation, economic security and currency policy, as Seoul has been striving to avoid or minimize the impact of new levies rolled out by US President Donald Trump's administration. On the same day, the KEI released a survey that found more than half of Americans think South Korean firms' investments in the US are good for the US economy -- an indication of their relatively positive view on economic ties with the Asian country. Responding to a question over whether South Korean businesses' investments are good for the US economy, 55.62 percent of the respondents said, "Yes." The percentages for Japanese and German companies came to 64.33 percent and 62.64 percent, respectively, while the figure for Chinese companies stood at 38.99 percent. Regarding a question about whether South Korean firms' investments in new US high-tech manufacturing plants are good for the US economy, 57.23 percent said, "Yes." For this question, the percentages for Japanese and German companies were tallied at 68.8 percent and 66.43 percent, while the figure for Chinese companies was 46.38 percent. The survey was conducted on a sample of 1,500 people across 10 states, including Arizona, Florida, Georgia, Michigan and New York, from Dec. 17 through Jan. 2. It had an overall margin of error of plus or minus 8.21 percentage points. (Yonhap)
Yahoo
24-04-2025
- Business
- Yahoo
South Korea to target lower tariffs in opening round of US trade talks
By Jihoon Lee SEOUL (Reuters) -A South Korean delegation will meet U.S. counterparts on Thursday for an opening round of trade talks, with cooperation on shipbuilding and energy expected to be on the agenda, and possibly shared defence costs, as Seoul seeks lower tariffs. South Korea, which faces 25% U.S. reciprocal tariffs, is among the first countries the Trump administration has initiated trade talks with, after its first face-to-face discussions last week with Japan, another key Asian ally slapped with 24% tariffs. "I think this is only going to be the opening salvo of negotiations," said Tom Ramage, Washington-based economic policy analyst at the Korea Economic Institute of America (KEI). Given how Seoul is competing with other countries and faces a 90-day timeframe before a tariff pause is due to end, he said talks were likely to be extended, and may even result in some form of renegotiated U.S.-Korea Free Trade Agreement. South Korea, a key U.S. ally, has often been singled out by Trump for its trade surpluses with the United States, which hit a record high of $55.6 billion in 2024, up 25% from 2023 and nearly five times higher than in 2019. Finance Minister Choi Sang-mok and Industry Minister Ahn Duk-geun are due to meet with U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer in Washington, D.C. at 8 a.m. (1200 GMT), on the sidelines of an International Monetary Fund and World Bank Group gathering. The meeting was arranged at the request of the United States, Seoul said, and comes after U.S. President Donald Trump and South Korea's Acting President Han Duck-soo discussed shipbuilding, energy purchases, an Alaskan gas project and defence payments in a phone call on April 8. "The government will do its best to find a 'win-win' between the two countries, with focus on three areas of trade balance, shipbuilding and LNG, under the principle that the national interest is the foremost priority," Han said on Thursday. Since the call, South Korean officials have touted shipbuilding as a "very important card" it holds. South Korea is the world's second-largest shipbuilder after China, and Trump has specifically called for cooperation in the sector since returning to power. At the same time, Seoul has taken a more cautious stance on the Alaskan gas project, saying participation could be part of a negotiation package, while noting questions about its profitability. South Korea's auto sector is seen as particularly vulnerable to tariffs, as the country's car sales to the United States account for 49% of its total auto exports. The U.S. has already applied 25% tariffs on autos, prompting Seoul to announce emergency support measures to help major exporting companies such as Hyundai Motor and Kia. On the issue of payments for the 28,500 U.S. troops South Korea hosts, Ahn said on Wednesday Seoul was prepared if the issue was brought up, but Foreign Minister Cho Tae-yul told lawmakers later it would not be considered for a package deal and should be dealt with separately. In preparation for discussions on non-tariff barriers, Seoul's delegation will include officials from eight different ministries: finance, trade, foreign affairs, technology, transport, environment, agriculture and health. South Korea is among three Asia-Pacific countries that have a comprehensive trade pact with the United States, eliminating nearly all tariffs between the two countries. It was first signed in 2007 but revised in 2018 during Trump's first term after he said the initial agreement was a "horrible deal". ACTING LEADERSHIP The trade talks come as South Korea remains embroiled in its worst political crisis in decades. A snap presidential election will be held on June 3, after former President Yoon Suk Yeol was impeached and removed from office this month over his failed declaration of martial law. "We basically expect concrete progress on the negotiations between the Korean and the U.S. government to come out only after the snap presidential election," said Oh Suk-tae, an economist at Societe Generale. Oh said it would be especially difficult for South Korea to make any firm commitment on energy projects and defence costs under an acting president. Han has, however, in interviews this month expressed willingness to reach a deal, saying the country will not fight back against Washington as it owes the U.S. for its recovery from the 1950-1953 Korean War. He has also not ruled himself out of contesting the election. "Should acting president Han Duck-soo appear to successfully negotiate tariff waivers for South Korea, particularly for its auto exports, he would increasingly position himself as a presidential candidate," said economists at S&P Global Market Intelligence. See separate FACTBOX on the trade talks.
Reuters
24-04-2025
- Business
- Reuters
South Korea to target lower tariffs in opening round of US trade talks
SEOUL, April 24 (Reuters) - A South Korean delegation will meet U.S. counterparts on Thursday for an opening round of trade talks, with cooperation on shipbuilding and energy expected to be on the agenda, and possibly shared defence costs, as Seoul seeks lower tariffs. South Korea, which faces 25% U.S. reciprocal tariffs, is among the first countries the Trump administration has initiated trade talks with, after its first face-to-face discussions last week with Japan, another key Asian ally slapped with 24% tariffs. "I think this is only going to be the opening salvo of negotiations," said Tom Ramage, Washington-based economic policy analyst at the Korea Economic Institute of America (KEI). Given how Seoul is competing with other countries and faces a 90-day timeframe before a tariff pause is due to end, he said talks were likely to be extended, and may even result in some form of renegotiated U.S.-Korea Free Trade Agreement. South Korea, a key U.S. ally, has often been singled out by Trump for its trade surpluses with the United States, which hit a record high of $55.6 billion in 2024, up 25% from 2023 and nearly five times higher than in 2019. Finance Minister Choi Sang-mok and Industry Minister Ahn Duk-geun are due to meet with U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer in Washington, D.C. at 8 a.m. (1200 GMT), on the sidelines of an International Monetary Fund and World Bank Group gathering. The meeting was arranged at the request of the United States, Seoul said, and comes after U.S. President Donald Trump and South Korea's Acting President Han Duck-soo discussed shipbuilding, energy purchases, an Alaskan gas project and defence payments in a phone call on April 8. "The government will do its best to find a 'win-win' between the two countries, with focus on three areas of trade balance, shipbuilding and LNG, under the principle that the national interest is the foremost priority," Han said on Thursday. Since the call, South Korean officials have touted shipbuilding as a "very important card" it holds. South Korea is the world's second-largest shipbuilder after China, and Trump has specifically called for cooperation in the sector since returning to power. At the same time, Seoul has taken a more cautious stance on the Alaskan gas project, saying participation could be part of a negotiation package, while noting questions about its profitability. South Korea's auto sector is seen as particularly vulnerable to tariffs, as the country's car sales to the United States account for 49% of its total auto exports. The U.S. has already applied 25% tariffs on autos, prompting Seoul to announce emergency support measures to help major exporting companies such as Hyundai Motor and Kia. On the issue of payments for the 28,500 U.S. troops South Korea hosts, Ahn said on Wednesday Seoul was prepared if the issue was brought up, but Foreign Minister Cho Tae-yul told lawmakers later it would not be considered for a package deal and should be dealt with separately. In preparation for discussions on non-tariff barriers, Seoul's delegation will include officials from eight different ministries: finance, trade, foreign affairs, technology, transport, environment, agriculture and health. South Korea is among three Asia-Pacific countries that have a comprehensive trade pact with the United States, eliminating nearly all tariffs between the two countries. It was first signed in 2007 but revised in 2018 during Trump's first term after he said the initial agreement was a "horrible deal". ACTING LEADERSHIP The trade talks come as South Korea remains embroiled in its worst political crisis in decades. A snap presidential election will be held on June 3, after former President Yoon Suk Yeol was impeached and removed from office this month over his failed declaration of martial law. "We basically expect concrete progress on the negotiations between the Korean and the U.S. government to come out only after the snap presidential election," said Oh Suk-tae, an economist at Societe Generale. Oh said it would be especially difficult for South Korea to make any firm commitment on energy projects and defence costs under an acting president. Han has, however, in interviews this month expressed willingness to reach a deal, saying the country will not fight back against Washington as it owes the U.S. for its recovery from the 1950-1953 Korean War. He has also not ruled himself out of contesting the election. "Should acting president Han Duck-soo appear to successfully negotiate tariff waivers for South Korea, particularly for its auto exports, he would increasingly position himself as a presidential candidate," said economists at S&P Global Market Intelligence. See separate FACTBOX on the trade talks.
Korea Herald
01-04-2025
- Politics
- Korea Herald
South Korea, US should go beyond rhetoric, get real on Taiwan contingency: report
Allies should clarify expectations for role of alliance in event of US-China conflict South Korea and the United States should initiate concrete, practical — and largely nonexternal — discussions on the intractable, long-avoided question of their alliance's role in a Taiwan contingency, moving beyond rhetorical alignment on peace and stability in the Taiwan Strait, a report released by a Washington-based think tank said Monday. The Korea Economic Institute of America pointed out the two allies remain unprepared for practical planning for a potential conflict between the US and China over Taiwan — particularly one that could trigger simultaneous instability on the Korean Peninsula, in the report 'Siloed No More: The US-ROK Alliance and a Taiwan Conflict.' ROK refers to the official name of South Korea, the Republic of Korea. 'A key topline takeaway was that despite a notable uptick in leader-level and diplomatic statements in support of peace and stability in the Taiwan Strait, official alliance discussions regarding a Taiwan conflict were at a very nascent stage, if not nonexistent,' read the report. 'Most US and South Korean respondents strongly felt such discussions were needed.' The report was written based on 42 interviews with current and former US and South Korean government officials, think tank experts and academics from June 2024 to February 2025 in both Washington and Seoul. Most were in-person interviews, with some held virtually or via written email responses. 'There was a gap between this notable and important language and the actual level of detailed conversation or scenario planning within the alliance about how a conflict would actually be navigated," Clint Work, a fellow and director of academic affairs at KEI, said Monday during an event in Washington on the report publication. The report pointed to a range of challenges and obstacles that have hindered formal, detailed discussions within the ROK-US alliance framework about a Taiwan conflict. Washington's 'strategic ambiguity' on whether it will defend Taiwan, as well as its failure to communicate concise expectations to allies such as South Korea, has resulted in hesitation from Seoul. Moreover, there is a lack of a framework that can serve as a basis for how allies can be involved and provide input in a Taiwan contingency. There is a widespread expectation that other allies, such as Japan and Australia, would take prominent roles, lessening the urgency on South Korea to prepare accordingly. In South Korea, a lack of bipartisan consensus on China issues, a lack of a strong bond with Taiwan, centralized decision-making that discourages bureaucratic initiatives and a predominant focus on the Korean Peninsula — along with concerns over provoking China — undercut Seoul's willingness to become actively involved in contingency planning in relation to Taiwan. To surmount such barriers, "various US and South Korean respondents strongly advocated for the US-ROK alliance to engage in discussions about more fundamental questions" on the Taiwan issue, the report read. 'In particular, what is South Korea's national interest in Taiwan, and how do its national interests interconnect with Taiwan and a potential Taiwan conflict, aside from the alliance and South Korea's prominent and understandable peninsular concerns?' The allies should engage in deeper discussions about whether — and to what extent — South Korea could contribute militarily in the event of a Taiwan contingency, or whether its role would be confined to providing civilian supports such as logistics, according to the report. One of the central issues for the allies is the necessity and potential levels of involvement by US Forces Korea, and how far the USFK's 'strategic flexibility' should extend before, during and after if a conflict over Taiwan were to occur. 'US and South Korean respondents felt the alliance needed to have more in-depth, regular and transparent discussions about the possible levels of USFK's involvement in a Taiwan conflict and what role South Korea would need to play in filling any potential gaps,' the report read. Against that backdrop, the allies should also examine whether it is acceptable for the United States to use both US and South Korean infrastructure in South Korea as a logistical hub for delivering support to Taiwan, according to the report. 'Therefore, the US-ROK alliance needed to begin having these conversations,' the report read. 'Agreeing with the need to discuss such issues, multiple respondents noted the importance of clarifying and calibrating expectations.'
USA Today
30-01-2025
- Business
- USA Today
North Korean worker fraud scheme sent nearly $1M to Pyongyang
Two North Koreans have been indicted for fooling American companies into hiring them for remote worker positions. The schemes aim to raise money for Pyongyang. Five people, including two Americans, were indicted in a fraud scheme that aimed to put remote IT workers in U.S. companies so they could funnel hundreds of thousands of dollars to North Korea, the Department of Justice announced. North Koreans Jin Sung-Il and Pak Jin-Song; Americans Erick Ntekereze and Emanuel Ashtor; and Mexican national Pedro Ernesto Alonso De Los Reyes were indicted on conspiracy charges relating to Ntekereze, Ashtor and Alonso providing assistance to Jin and Pak so they could get American jobs. They funneled roughly $900,000 they raised between 2018 and 2024 to the coffers of North Korean leader Kim Jong Un, the Justice Department said. The people named in the federal indictment belong to a larger group of workers that got jobs more than 60 U.S. companies. The case out of the Southern District of Florida is the latest in federal efforts to put a stop to North Korea remote worker fraud. The schemes have taken off in recent years, according to experts. American companies cannot hire nationals of the belligerent nation due to sanctions. 'Because of the pandemic and remote work they've had greater success in terms of the revenue-raising activity,' Scott Snyder, CEO of the Korea Economic Institute of America, said of North Korea. 'The rise of remote work has given North Korea opportunities to impersonate legitimate IT workers.' The five were indicted on several conspiracy charges: to commit wire and mail fraud; money laundering; and transfer of false identification documents, officials said. Jin and Pak are additionally charged with conspiracy to violate the International Emergency Economic Powers Act. They face up to 20 years in prison if convicted. They laundered the money through a Chinese bank. The FBI arrested Americans Ntekereze and Ashtor, federal officials said. Alonso was arrested by authorities in the Netherlands on an arrest warrant from the U.S. Jin and Pak are currently fugitives and their whereabouts are unknown. Attorneys for the group could not be reached for comment. Worker fraud a 'cash cow' for North Korea Remote worker fraud schemes involve North Korean nationals posing as remote - often IT - workers. They depend on locals who hold onto their company computers at so-called laptop farms. Local collaborators give the North Koreans remote access to the computers so they appear local to American companies. Illegal remote workers do the job they are hired for but the funds are funneled back to the isolated nation. Remote worker fraud schemes also open up American companies to other forms of cyberattack or theft, experts say. The pandemic was a boon for such schemes, according to Korea expert Snyder. North Korea sent thousands of skilled IT workers abroad with the hopes of landing jobs at American companies, according to the State Department. They look attractive to unwitting American companies but businesses hiring them also put themselves at risk. 'They're knowledgeable, they're capable and they're doing the job plus more,' Snyder warned of the remote workers. 'If you let someone like that onto your staff they can also plant malware and obtain backdoor access to your system.' The schemes are low risk, high reward for the North Koreans workers, Snyder said, as they tend to work from countries outside the reach of American law enforcement. Typically, he said they work from countries friendly to Kim's regime but with better internet infrastructure, namely China and Russia. 'This is a cash cow for North Korea,' Snyder said. 'The return on investment still justifies in spades the effort that they're making.' Funds the workers raise likely go toward the regime's arms programs, according to Snyder. American collaborators North Korean remote workers, including Pak and Jin, land jobs using forged American passports but at that point the schemes don't work without U.S.-based collaborators. That was Ntekerese and Ashtor's role in the scheme, according to the indictment. The pair received laptops from the companies that hired Pak and Jin and then allowed the North Koreans to access the laptops remotely in order to appear as if they were locals. Ntekereze and Ashtor each received tens of thousands of dollars for their participation, the indictment says. Mexican national Alonso is named in the indictment because he allowed Jin to use his identity to fool American companies. It's not clear from the indictment how the conspiracy initially came together. The U.S. Attorney's Office for the Southern District of Florida declined to comment. Ntekereze and Ashtor's involvement went so far as registering companies that posed as staffing agencies to provide American companies with remote IT workers, court filings say. The companies that unwittingly hired the North Koreans were a multinational retail corporation, a Connecticut-based financial institution, a Miami-based cruise line and a Silicon Valley tech company, according to the indictment. Court filings say the North Koreans also did over $1 million in damages to the financial and tech firms. Wanted: North Korean remote workers The case out of the Southern District of Florida is just the latest in federal efforts to root out North Korean remote worker fraud. A federal court in St. Louis, Missouri, indicted 14 North Korean nationals for remote worker fraud in December, according to the Department of Justice. The group brought in a whooping $88 million for the regime over the course of the six-year scheme, Justice officials said. The money came from the salaries they earned as well as stealing from the companies. Authorities arrested a man in Nashville in August for operating a laptop farm for North Korea, federal officials said. Matthew Isaac Knoot, 38, ran the farm for about a year. The Justice Department indicted three North Koreans and an Arizona woman in May for a 'staggering fraud' scheme that involved using the identities of 60 Americans to bilk money from some 300 U.S. companies, including numerous well-known Fortune 500 companies, banks and other financial service providers, according to an indictment unsealed by the Department of Justice.
