Korean firms call for US tariff relief, visa reforms amid trade uncertainty
Lee Kye-in, chair of the Korea Chamber of Commerce and Industry's (KCCI) international trade committee, speaks on ways to cope with U.S. tariff policies at a seminar in Seoul, Monday. Courtesy of the KCCI
Korean companies urged the government Monday to seek eased U.S. tariffs on strategic industries and improvements to the U.S. visa program for Korean workers, a major business lobby said.
The request was made during a seminar hosted by the Korea Chamber of Commerce and Industry (KCCI), attended by Trade Minister Yeo Han-koo and executives from a number of leading businesses, including Hyundai Motor, LG Group, HD Hyundai, POSCO International, CJ Group, Lotte Group and Hanwha Group, according to the KCCI.
In his opening remarks, Lee Kye-in, chair of the KCCI's international trade committee, said, "Much of the uncertainty has been alleviated through the recent Korea-U.S. tariff negotiations and the bilateral summit, despite lingering tensions from a series of U.S. tariff actions and trade policies."
He added that, as shown by the recent visa issues faced by Korean workers at Hyundai Motor's battery plant construction site in Georgia, unexpected challenges can arise at any time.
Participants said that tariff deferrals or exemptions are urgently needed for strategic sectors, such as shipbuilding and nuclear power, where U.S. supply chains remain incomplete and Korea's domestic supply chains can fill the gap.
They also voiced concerns that an expansion of tariffs on key sectors, such as semiconductors, would inevitably erode price competitiveness.
On July 30, Seoul and Washington reached a framework deal under which the U.S. agreed to lower "reciprocal" tariffs on Korean products and cut auto tariffs to 15 percent from 25 percent in return for Korea's pledge to invest US$350 billion in the U.S. and other commitments. But the auto tariffs have yet to be lowered.
Earlier this month, U.S. immigration authorities detained more than 310 Korean workers in a crackdown at the Georgia site, saying they were found to be working illegally, with many of them on short-term or recreational visas that prohibit employment. The workers were released on Sept. 11.