ED Mr. Trump, apologize and the problem is solved

Trade Minister Yeo Han-koo speaks to reporters at Incheon International Airport, Monday, before leaving for further negotiations with the United States on tariffs and investment. Yonhap

There is no easy solution to tariff negotiations between Korea and the United States. The demands from the U.S. Donald Trump administration regarding Korea's pledged $350 billion investment in the United States are resulting in one senior Seoul official after another visiting for negotiations. Also thrust into this roiling cauldron was the abrupt raid, the largest on a single site by U.S. immigration officials, at the construction site of a battery plant jointly operated by Hyundai Motor Group and LG Energy Solution in Georgia.

In the days since the raid on Sept. 4 (local time), in which nearly 500 workers were arrested and detained, including more than 300 Korean nationals, both nations are grappling with its ramifications. Put plainly, nations other than Korea that have pledged to invest in the U.S. are questioning whether they will also be subject to such treatment. For the U.S., the dilemma is how to align and harmonize its goal of revitalizing its manufacturing sector while also satisfying supporters who applaud the Trump administration's intensified immigration crackdowns.

For the directly affected Korean workers, they need answers, reassurances and an apology if they are to possibly return to work in the U.S. At the $7.6 billion Hyundai-LG plant in Georgia, a joint battery plant was set to complete construction and begin operating by next year. However, LG Energy Solution officials have reportedly said that the construction will likely be delayed by two to three months.

U.S. officials have softened their tone on the matter. Trump said Sunday that he does not want to “frighten off” foreign investment. U.S. Deputy Secretary of State Christopher Landau recently expressed regret over the incident during a visit to Seoul. He reposted Trump's message Monday, adding, "This a very important message directly from President Trump that I've reaffirmed on my recent trip to South Korea."

These comments aren't reassuring many Koreans, however. Is it really an expression of regret from the U.S., or simply an attempt to smooth over the incident and move on? To be fair, officials have the right to carry out immigration raids in their respective countries, but the process must respect legitimate objectives.

The reality is that the Korean public feels its alliance efforts and investments were brushed aside once the pomp of the announced tariff agreement faded. But as Trump's industrial policy expands and shifts, he must grasp the inconsistencies between his trade and immigration policies. In the case of the raid, a simple apology from the U.S. president could both reinvigorate tariff negotiations and ease Koreans' anger.

The uphill negotiations with the United States pose a deep conundrum for Korea. Industry Minister Kim Jung-kwan, who was previously touted for his "chemistry" with U.S. Commerce Secretary Howard Lutnik after reaching the agreement on the $350 billion investment, returned to Korea from Washington empty-handed Sunday. Trade Minister Yeo Han-koo is currently in Washington for further negotiations.

Stalling the process is a disagreement over how to allocate Seoul’s pledged $350 billion investment in the United States. Washington wants Korea to accept terms similar to those it secured with Tokyo earlier this month. Under that deal, Japan agreed to transfer funds within 45 days of the U.S. selecting a project, with investment proceeds split 50-50. Once the allocated amount is reached, the U.S. would take 90 percent and Japan 10 percent.

For Korea, there are concerns that such a scheme would negatively impact its foreign reserves, to the extent that it has requested a foreign currency swap. In the meanwhile, a 15 percent tariffs for Japanese autos went into effect while Korean cars still face a 25 percent tariff.

In dealing with a long-standing ally and pivotal trade partner, many Koreans believed the two nations were bound by mutual respect and shared prosperity. Korea and the U.S. should both be mindful of the shared history and values that underscore the two countries' 72-year alliance.

Festering anger in Korea can fuel anti-U.S. sentiment and there is no need for that at this juncture. The U.N. Assembly in New York is coming soon, and soon after will be the Oct. 31- Nov. 1 APEC Economic Leaders' Meeting in Gyeongju, North Gyeongsang Province, which President Lee Jae Myung and Trump are likely to both attend. A direct apology or an address soon from the U.S. president would go a long way. Both administrations no doubt have their domestic populations to listen to, but they cannot afford to sideline trade negotiations and investment process to align supply chains, bring jobs and consolidate diversifying markets.