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Seoul grapples with stalled US tariff talks even during Chuseok holiday
Industry Minister Kim Jung-kwan arrives at Incheon International Airport, Monday, after a meeting with U.S. Commerce Secretary Howard Lutnick in New York. Yonhap
By Park Jae-hyuk
Industry minister returns without discussing Trump's 'up-front' remarks
Seoul has continued with efforts to break the deadlock in stalled tariff negotiations with Washington throughout the extended Chuseok holiday.
Aiming to finalize details about the tariff negotiations ahead of the Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting scheduled for later this month in Gyeongju, North Gyeongsang Province, the government dispatched senior officials to the United States and held an emergency meeting to discuss countermeasures.
Industry Minister Kim Jung-kwan, who returned Monday from an unannounced trip to meet U.S. Commerce Secretary Howard Lutnick in New York, said Washington understands Seoul's concern that Korea's foreign exchange market could be destabilized if the country accepts U.S. President Donald Trump's request to provide the proposed $350 billion investment fund in cash.
Expressing optimism about additional meetings with the U.S. before the APEC summit, Kim said he expects to meet with Lutnick again soon.
"Both sides have narrowed the gap concerning the foreign exchange market," Kim told reporters at Incheon International Airport.
Since the U.S. agreed in July to lower its proposed blanket duties on Korean products from 25 percent to 15 percent in exchange for Korea's $350 billion investment in American industries, the two countries have yet to sign an official trade agreement, with differences remaining over the structure of the investment.
While Washington has insisted on a cash investment and remained silent on Seoul's proposal to structure the fund using loans and guarantees, the Korean government responded by offering an unlimited currency swap arrangement with the U.S. to mitigate impacts on the foreign exchange market.
Kim said he "discussed a currency swap arrangement" with Lutnick, but was cautious about claiming any "progress" had been made on the topic. He also denied that Trump's comments demanding Korea's payment be made "up front" were discussed.
A day before Kim's arrival, the presidential office convened an emergency meeting on U.S. tariffs to share the outcome of his meeting with Lutnick, held late Saturday (local time).
"The government will continue to engage in follow-up negotiations with the U.S. on tariffs, prioritizing the national interest," the Presidential Office said in a statement.
Ambassador to the United States Kang Kyung-wha speaks to the press upon arrival at Dulles International Airport near Washington, Saturday (local time). Yonhap
On Saturday (local time), Korea's new ambassador to the U.S., Kang Kyung-wha, arrived in the U.S.
Addressing the ongoing talks over the $350 billion investment fund as a key issue for bilateral relations, she pledged to mobilize "all embassy resources." Before her departure, Kang met with Hyundai Motor Group Executive Chair Chung Euisun to discuss the 25 percent tariff imposed on Korean car imports to the U.S.
"The industry minister and trade minister are directly involved in efforts to secure a deal, but as the ambassador on the ground, I feel it's important to provide them with every possible support," Kang said.
On Tuesday, four lawmakers from the ruling Democratic Party of Korea will also visit the U.S. to explain Korea's position on the $350 billion investment fund to U.S. businesspeople.
"We hope our upcoming visit will help facilitate the tariff negotiations," Rep. Lee Un-ju said.
Still, uncertainties remain about whether Korea can reach its goal, as Trump is expected to visit Korea for only one day before the APEC summit and depart ahead of the Oct. 31 event. Speculation continues that the U.S. government shortened his trip, due to the slow progress in tariff talks with Korea.