US tariff talks wake-up call for S. Korea to double down on innovation: finance minister

The recent negotiations with the United States over its aggressive tariff scheme underscored the urgent need for Korea to build "a super-innovative economy" and strengthen its global competitiveness, Seoul's finance chief said Monday.

Finance Minister Koo Yun-cheol made the point during a meeting with senior ministry officials, which was the first gathering of its kind since he took office in mid-July.

"The recent negotiations with the U.S. served as a reminder of the importance of laying the foundation for a super-innovative economy, one that remains resilient in the face of domestic and global challenges, and securing world-class competitiveness," Koo said.

After monthslong negotiations, Seoul and Washington clinched a tariff agreement last Thursday under which the U.S. will impose a 15 percent tariff on Korean imports, against the initially threatened 25 percent, in exchange for Korea's investment of US$350 billion in the U.S.

Koo emphasized the importance of identifying key strategic sectors, such as artificial intelligence (AI), and mobilizing all resources available to strengthen the global competitiveness of Korean companies and achieve "genuine growth."

For such a goal, Koo pledged to create a more business-friendly environment by easing regulations and implementing a range of supportive measures for the private sector.

He also instructed officials to make "thorough preparations" for follow-up negotiations on the tariff scheme and to swiftly develop countermeasures for potential industry-specific damage, the ministry said.