As the final conclusion of tariff talks between Korea and the United States is delayed, views have emerged that the follow-up negotiating process should propose a job-linked revenue-sharing model and the creation of a Korea-only employment visa (E-4). Voices also called for a mother factory (core production base) strategy and stronger support for reshoring companies amid concerns about industrial hollowing-out due to expanded investment in the United States.
The Korea Chamber of Commerce and Industry on the 22nd co-hosted the "post-tariff talks Korea-U.S. industrial cooperation win-win strategy seminar" with a Korea-U.S. association. The aim was to analyze the impact and outlook of the Korea-U.S. tariff talks that have stalled and to discuss necessary follow-up measures in the coming negotiations.
Experts said Korea, which has pledged $350 billion (about 457 trillion won) in investment as a condition for a reciprocal tariff reduction, should codify a minimum rate of return so that both countries can achieve a win-win, and examine a revenue-sharing structure that guarantees an additional rate of return if certain benchmarks—such as local employment and parts procurement—are met.
Heo Jeong, a professor of economics at Sogang University, said, "Taking Japan's 9:1 revenue sharing as a cautionary example, our negotiating team could propose so-called job-linked and supply chain-linked revenue sharing," adding, "For example, we could consider a model that automatically guarantees an additional 2% rate of return for every 1,000 jobs."
Heo also stressed proposing that 5%–10% of the total investment be designated exclusively for research and development (R&D) to collaborate with U.S. Department of Energy (DOE) and National Institute of Standards and Technology (NIST) programs, with the intellectual property generated jointly owned by Korea and the United States.
Choi Won-mok, a professor at Ewha Womans University Law School, said, "U.S.-driven protectionism will last at least 20 years," emphasizing, "As a return for large-scale investment in the United States, a 'package deal' strategy that encompasses trade, diplomacy, and security issues—such as favorable investment revenue sharing, professional visas and employment stabilization, guaranteed tax credits for U.S.-bound investment, and a freeze on the defense cost-sharing ratio—is effective."
Corporations expanding investment in the United States said that dispatching essential specialists to operate local production facilities is being blocked by visa constraints. Major companies asked for discussions on creating a Korea-only employment visa (E-4), pushing for priority allocations of H-1B (specialty occupation visa), and shortening review times for visas such as L-1 (intra-company transferee visa) and H-1B.
An Gi-hyeon, an executive director at the Korea Semiconductor Industry Association, said, "Without the dispatch and employment of Koreans in the United States, semiconductor investment and operations are highly likely to be delayed, which is not a situation the United States would want," adding, "There are also reports that the recent detentions of Korean personnel are measures to pressure the hiring of U.S. workers, but it should be underscored that it is difficult to quickly secure skilled local personnel and they cannot be replaced."
Jeong Seok-ju, an executive director at the Korea Offshore & Shipbuilding Association, said, "To modernize U.S. shipyards and train specialists, it is necessary to dispatch domestic specialists," adding, "It is time to consider improvements to the visa system through close consultations between the two countries."
The H-1B visa, which domestic corporations mainly use, is issued by lottery with a competition rate of about 5.5 to 1, and the number issued to Koreans is only around 2,000 per year. In particular, small and midsize companies find it difficult to obtain L-1 and E-2 (investor visa) approvals and effectively rely on H-1B, making the supply of specialists highly uncertain.
In the automobile and battery sectors, there were concerns about industrial hollowing-out due to expanded investment in the United States, with calls to strengthen support for reshoring companies and to adopt a mother factory strategy. The argument is that as corporations move production facilities overseas to avoid tariffs, Korea's manufacturing base could weaken and employment could decline.
Kim Ju-hong, an executive director at the Korea Automobile & Mobility Association, said, "There is a need to support maintaining and expanding the domestic production base by creating a new domestic production promotion tax regime for products leveraging national strategic technologies." Choi Jong-seo, a managing director at the Battery Industry Association, said, "Through a mother factory strategy, we must maintain and strengthen the fundamental competitiveness of the domestic battery industry."
Choi added that to this end, it is urgent for the government to prepare strategic support policies, including: ▲ introducing tax credits to promote domestic production of advanced strategic industries, ▲ expanding R&D investment to maintain a technological lead, and ▲ exempting or lowering tariffs on equipment and production materials and supplies for plants built for U.S.-bound investment.
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