US interested in Korea's proposal on shipbuilding, semiconductor cooperation: trade minister

Trade Minister Yeo Han-koo speaks to the press at Incheon International Airport, Thursday, after returning from Washington. Newsis

The United States has shown interest in Korea's proposal for manufacturing cooperation, particularly in the shipbuilding and semiconductor sectors, during recent trade talks, Seoul's top trade negotiator said Thursday.

Trade Minister Yeo Han-koo briefed reporters on his trip to Washington, where he held tariff negotiations with U.S. Commerce Secretary Howard Lutnick, U.S. Trade Representative (USTR) Jamieson Greer and members of the U.S. Congress.

His visit came as Korea enters the final three weeks of ongoing trade negotiations, after the Donald Trump administration said it would impose 25 percent reciprocal tariffs on Korean products beginning Aug. 1.

During two meetings with Secretary Lutnick, Yeo emphasized Seoul's commitment to deepening manufacturing ties and urged the Trump administration to grant "favorable treatment" to Korean firms when considering tariffs on imported cars, steel and other products, according to his office.

"The U.S. side was very interested in bilateral collaboration in the areas of shipbuilding and semiconductors, as they are crucial sectors in terms of industrial competitiveness and national security, and in how Korean companies can contribute to Washington's goal of rebuilding its manufacturing sector," Yeo told reporters upon his arrival at Incheon International Airport, west of Seoul.

Yeo said his visit focused on accelerating trade negotiations to reach "a landing zone" within three weeks, noting that he plans to visit Washington again for further negotiations before August.

"The Trump administration is very committed to structurally reducing Washington's trade deficits ... through negotiations on tariff and non-tariff issues with its trading partners," Yeo said.

"We now have a broad picture of what the U.S. wants, so it is time for us to make a strategic decision on what kind of regulatory improvements we can realistically pursue, while also defending domestically sensitive issues," he added.

The Trump administration is known to have asked for greater access to the Korean market for the agriculture, automotive, digital and service sectors during recent bilateral trade consultations.

Earlier this year, the USTR issued a report on foreign trade barriers, which pointed to a number of non-tariff trade measures by Seoul, including its import ban on American beef from cattle aged 30 months or older, emission-related regulations on imported cars, proposed online platform regulations and restrictions on the export of location-based data.

Regarding Korea's potential participation in the Alaska liquefied natural gas project, Yeo said he met with Dan Sullivan, a U.S. senator from Alaska, and agreed to continue discussions, noting the U.S. "strongly" wants Seoul's participation.

Asked whether Korea and the U.S. will seek a package deal incorporating trade and defense issues, he said only that it could be considered as part of a broader framework at some point.