Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Korea, US to hold high-level trade talks this week
Minister of Trade, Industry and Energy Ahn Duk-geun speaks during a forum hosted by the American Chamber of Commerce in Korea in Seoul, Friday. Yonhap
By Lee Min-hyung
LNG, map data emerge as Korea’s tools for tariff negotiations with US
Korea will hold a "two-plus-two trade consultation" with the United States this week among the finance and trade ministers from both countries, Korea's Ministry of Trade, Industry and Energy said Sunday.
For the upcoming tariff negotiations, Finance Minister Choi Sang-mok and Industry Minister Ahn Duk-geun will meet with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer in Washington sometime around Thursday or Friday.
"The consultation was arranged at the request of the United States, and detailed schedules and agendas are currently being coordinated with the U.S.," the ministry said in a text message to reporters.
Against this backdrop, attention is turning to whether U.S. President Donald Trump will participate in the talks, as he did during negotiations with Japan last week.
Trump's potential participation rattled the negotiation table, as he mentioned "the cost of military support" as part of the agenda while in discussions with Japan's chief negotiator Ryosei Akazawa, the minister in charge of economic revitalization.
"So far, the U.S. has not raised the issue of defense cost-sharing (with Korea),” Ahn said in a televised program Sunday. “If the topic does come up, we plan to listen carefully to the U.S. position, relay it to the relevant authorities and have the responsible ministry respond accordingly.”
Finance Minister Choi Sang-mok, right, looks at a document during a hearing at the National Assembly in Yeouido, Seoul, Wednesday. Yonhap
For Korea, the goal is to pursue a comprehensive package deal in the ongoing tariff talks by leveraging liquefied natural gas (LNG) and shipbuilding to secure reduced trade levies on key export-dependent manufacturers.
The government hopes to utilize increased LNG imports from the U.S. as the biggest bargaining chip to counter escalating tariff risks, particularly to Korean carmakers.
If Korea agrees to take part in an Alaskan pipeline construction project and increase LNG imports from the U.S., Seoul can reduce its trade surplus with the world’s largest economy and ask for reduced tariffs on key export items, such as cars and chips.
Korea is also in a better position to sign LNG import contracts with the U.S. after ending its deals with Qatar and Oman last year.
Last year, Korea’s LNG imports came primarily from Australia with 26 percent, followed by Qatar with 24 percent, Oman with 12 percent, Malaysia with 12 percent and the United States with 11 percent.
However, a detailed agenda for the upcoming tariff negotiations has not been confirmed, with the industry minister reiterating the government will go all out to abolish or reduce tariffs on Korea’s major export items.
“We will undertake a full-scale negotiation with the U.S., so our key export items, such as vehicles and semiconductors, are exempt from any tariffs,” Ahn said.
Ahn underscored the importance of taking a careful approach to LNG projects with the U.S.
“The government is approaching the issue as part of our energy security alliance with the U.S., and we will be able to create good opportunities by teaming up with other Asian countries, such as Japan, Taiwan, Thailand and Vietnam, which also display interest in the project.”
The USNS Wally Schirra sets sail after undergoing maintenance by Hanwha Ocean near its Geoje Island shipyard in South Gyeongsang Province. Courtesy of Hanwha Ocean
Shipbuilding is also another key area of leverage for Korea in the upcoming talks.
Trump has expressed interest in more shipbuilding ties with Korean firms.
Last year, Hanwha Ocean received orders for maintenance, repair and overhaul services for the U.S. Navy. HD Hyundai Heavy Industries also recently signed a memorandum of understanding with Huntington Ingalls Industries from the U.S. for future technological cooperation.
There is also a possibility that the government will grant approval for Google to transfer local map data abroad as a major bargaining chip in the negotiations.
Korea rejected Google's map data requests twice before, in 2007 and 2016, citing national security laws. Google wants Korea to allow the transfer of 1:5,000-scale high-precision map data to the firm’s data centers abroad.
Last month, the U.S. Trade Representative cited the map issue as one of the major trade barriers with Korea.
It remains unclear whether the government will accept the request anytime soon, due to regulations on images of high-security sites such as military bases and prisons.