South Korea and the United States are pushing hard for a fair trade deal that benefits both sides, says Seoul’s Industry Minister Kim Jung-kwan. He urged everyone to stay patient, as this agreement could shape South Korea’s future in big ways.
The talks hit a rough patch recently, but they’re now in a lively back-and-forth stage, Kim explained during a press conference. Even with worries about the framework trade agreement signed in late July, the South Korean government plans to keep negotiating with Washington. “The US today isn’t the same as it was 10 or 20 years ago—it’s a whole new player,” Kim noted. He compared the discussions to a “tough ping-pong match,” especially after his recent meeting with US Commerce Secretary Howard Lutnick last week.
Under the July 30 deal, South Korea committed to a massive $350 billion investment in the US. In return, the US agreed to slash its reciprocal tariffs on South Korean goods to 15% from the proposed 25%, and drop car tariffs to 15% from the current 25%. But tensions arose over how South Korea will handle that investment pledge. Seoul wants to mix in loans and credit guarantees, while the US insists on direct investments. Kim addressed the fears head-on: “Some worry the US will scoop up all that $350 billion, but that’s not how it works. These projects will boost Korean companies too.”
When asked about skipping the deal and just paying the higher 25% tariff while supporting local firms financially, Kim stood firm. He stressed that ongoing talks with the US are key to South Korea’s future relationship with its ally.
The minister also touched on a recent immigration raid that upset many in South Korea. US authorities detained over 300 Korean nationals during a raid on a battery plant in Georgia, run by a Hyundai Motor and LG Energy Solution joint venture, in early September. All but one returned home last week through “voluntary departure.” Kim shared that Lutnick promised to “fix” these immigration issues tied to Korean investments during their New York meeting. “Lutnick used the word ‘fix’ and expressed regret,” Kim said. “It never should have happened, and Washington seemed really shaken up about it. Even the US deputy secretary of state, who visited Korea recently, voiced regret.”
Shifting gears to energy, Kim highlighted the urgent need for new nuclear power plants in South Korea. He pushed for building two new reactors and one small modular reactor to meet rising energy demands by 2035 and 2036. These plans are part of the 11th basic plan on electricity supply and demand, set for 2024 to 2038 and finalized in February. But the environment minister recently suggested pausing them for a public review, especially with the environment ministry set to take over energy tasks from the industry ministry under a new reorganization.
Finally, on a sticky dispute settlement between state-run Korea Hydro & Nuclear Power (KHNP) and US firm Westinghouse, Kim said his ministry is investigating if everything followed proper procedures. Media reports claim the deal might block KHNP from bidding on new power projects in North America and Europe, except the Czech Republic. Kim urged viewing it through a “business” lens as the probe continues.
These developments show South Korea navigating tricky US-South Korea trade relations and domestic energy challenges amid global shifts.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
