Trade minister says has explained differences between Korea, Japan to US

Trade Minister Yeo Han-koo, center, speaks to reporters at Incheon International Airport, Friday. Yonhap

Trade Minister Yeo Han-koo said Friday he emphasized the differences between Korea and Japan during recent talks with the United States, as the two countries have been in negotiations to hash out specifics of a bilateral trade deal struck in late July.

Speaking to reporters at Incheon International Airport, west of Seoul, upon returning from a trip to Washington, D.C., Yeo said he emphasized the distinction between the two countries during a meeting with U.S. Trade Representative Jamieson Greer.

Their meeting marked the latest round of negotiations between Seoul and Washington, following a separate meeting last week between Korean Industry Minister Kim Jung-kwan and U.S. Commerce Secretary Howard Lutnick in New York.

"I tried to explain as thoroughly as possible (to the U.S. side) that Japan and Korea are different," Yeo told reporters.

On July 30, the two sides reached a framework deal under which U.S. President Donald Trump's administration agreed to lower "reciprocal" tariffs on Korea and sectoral tariffs on Korean autos to 15 percent from 25 percent in return for Korea's commitment to investing $350 billion in the United States and other pledges.

Korean President Lee Jae Myung and Trump affirmed the deal during their White House summit on Aug. 25, but the two sides have yet to settle their differences over how to fund Korea's $350 billion investment package and share profits from it.

Japan, which concluded a similar agreement with the U.S. earlier than Korea, pledged $550 billion in investments.

The Seoul government is reportedly negotiating for more favorable terms, including a request for an unlimited currency swap arrangement, citing concerns that injecting $350 billion in cash could strain the foreign exchange market.

"We are doing our best to present objective data and analysis to persuade the U.S. that Japan and Korea are fundamentally different in many respects," Yeo said.

The reduction of U.S. tariffs on Japanese autos to 15 percent from 27.5 percent, starting Tuesday, has further raised pressure on Korean negotiators, as it will put Korean auto exports at a disadvantage in the U.S. market.

The U.S. has agreed to lower tariffs on Korean autos to 15 percent as well, as part of the bilateral trade deal, but it remains uncertain when the deal will go into force amid negotiations over specifics.

Regarding the issue of auto tariffs, Yeo said the government fully recognizes the seriousness of the matter and is making every effort to resolve it as swiftly as possible.