As the deadline for the reciprocal tariff imposition set by the Donald Trump administration approaches on Aug. 1, claims are gaining traction that the United States, currently in negotiations, is demanding additional concessions from Korea. Analysis shows that Korea faces a serious turning point, as failure to reach an agreement would result in a 25% tariff rate.
On the 29th (local time), the Korean government dispatched Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol to the U.S., tasking three top-ranking officials in the economy, industry, and trade sectors to focus on negotiations. Deputy Prime Minister Koo is scheduled to meet with Secretary of Commerce Howard Lutnick on that day and with Secretary of the Treasury Scott Bessent on the 31st.
Minister of Trade, Industry and Energy Kim Jung-kwan and Yeo Han-koo, Chief Negotiator of the Ministry of Trade, Industry and Energy, are already on a business trip to the United States, where they are reported to have gathered in Washington, D.C. after following President Donald Trump's visit to Scotland.
On the 30th, Minister of Foreign Affairs Cho Hyun also arrived in the U.S. and will meet with Secretary of State Marco Rubio to enter into comprehensive negotiations.
The Korean government's top priority is to reduce the reciprocal tariff rate of 25% that President Trump previously notified. However, recent reports indicated that Secretary Lutnick urged Korean government officials to bring their best and final trade negotiation proposal to the table, raising concerns that the U.S. may be adopting a negative stance towards Korea's proposal.
Earlier, Secretary Lutnick confirmed in an interview with Fox News that he met with Minister Kim and Deputy Minister Yeo in Scotland and emphasized, 'Consider how genuinely they want to reach an agreement,' but did not mention any specific negotiation details.
In particular, the two countries are seen to be showing a gap in terms of the scale of investment in the U.S. The Korean government had prepared an investment plan of '$100 billion plus alpha,' but there have been reports that Secretary Lutnick demanded an investment of about $400 billion, which is approximately four times larger.
Additionally, since Japan promised an investment of $550 billion and the European Union pledged $600 billion, it is analyzed that the U.S. expectation for Korea has significantly increased.
Given the critical situation, Korean corporations that will directly carry out investments in the U.S. are flocking to Washington, D.C.
In relation to Korea's large-scale shipbuilding cooperation project named 'MASGA,' which is worth tens of trillions of won, Kim Dong-kwan, Vice Chairman of Hanwha Group, which operates a shipyard in Philadelphia, Pennsylvania, entered the U.S. the day before, and Lee Jae-yong, Chairman of Samsung Electronics, is also reported to have arrived in Washington, D.C.