Experts call for strategic preparations for follow-up trade talks with US

The Federation of Korean Industries (FKI) headquarters in Seoul / Courtesy of FKI

Korea needs to make strategic preparations for future trade talks with the United States following a recent tariff deal, experts said Tuesday, stressing the need to prioritize the business community's interests.

The call was made during a roundtable hosted by the Federation of Korean Industries (FKI) after Seoul struck a trade agreement with Washington under which the United States lowered its reciprocal tariff rate for Korea to 15 percent from the initially proposed 25 percent.

In return, Seoul promised to invest a combined $350 billion in the U.S. for cooperation in key industries, including shipbuilding and semiconductors. The reciprocal tariffs went into effect Friday (U.S. time).

"It is now time for Korea to devise strategies to effectively address the business community's challenges while building a mutually beneficial framework with the United States during follow-up talks," former Trade Minister Yoo Myung-hee said.

Yoo added that Asia's No. 4 economy also needs to diversify its trade portfolio amid the changing norms of the global trade environment following Washington's high tariffs and protectionist policies.

"It is important for the government to make proactive efforts to ease regulations in order to maintain the competitiveness of the manufacturing sector," Yoo said.

Other participants in the meeting also emphasized the need for a comprehensive strategy in follow-up trade talks with the U.S., potentially including security agendas.

"We need to make strategic preparations as the two countries are expected to engage in talks in the security sector, with agendas including defense cost sharing and adjustments of the role of the U.S. forces in Korea," said Choi Seok-young, former ambassador to Geneva.

"As there are differences in the details of the $350-billion fund, the government needs to set a clear principle and standard to address the issue," Choi added.

Kim Chang-beom, vice chairman of the FKI, noted that while the recent trade deal has reduced uncertainties for Korean companies, the two countries need to work toward deeper cooperation in the technology and industrial sectors beyond tariff-related issues.