The South Korea-U.S. trade negotiations, centered on "$450 billion investment (including energy purchases) and a 15% reciprocal tariff," dramatically reached an agreement just a day before the deadline. The government announced that it secured President Trump's signature by promoting a $150 billion South Korea-U.S. shipbuilding cooperation project, "MASGA (Make America Shipbuilding Great Again)."
However, there are also uneasy aspects that need to be carefully considered in terms of specific interests and losses. Secretary of Commerce Howard Lutnick said regarding the $350 billion investment into the U.S. as a condition for reducing the reciprocal tariff, "90% of the investment revenue will return to the American people." The U.S. applied the same revenue distribution method in its trade agreement with Japan.
The issue is that officials like Kim Yong-beom, head of the presidential policy office, Deputy Prime Minister and Minister of Economy and Finance Kwun Yun-chul, and Minister of Trade, Industry and Energy Kim Jung-kwan, have not provided a clear explanation regarding Secretary Lutnick's statement that "90% of the revenue will be owned by the U.S."
During a briefing at the presidential office that morning, Deputy Minister Kim said in response to related questions, "Our interpretation is that it seems to be the concept of 'reinvestment,'" and noted, "It's hard to understand how 90% of the profits would go to the U.S. in a normal civilized nation." His explanation suggests that for South Korean corporations participating in the South Korea-U.S. investment fund, if they generate revenue in the U.S., the intention is for them to reinvest that within the U.S.
Deputy Minister Kim stated, "The original text from the U.S. says, 'retain 90% of profits from the investment,'" and added, "We discussed what 'retain' might mean, but since it's unclear who will invest how much and where, it's difficult to reasonably deduce what the U.S. is thinking." He continued, "The U.S. government might recommend a business and guarantee an off-take, and if profits arise in the U.S., they could exit at once as a capital gain, but I wonder if that capital is supposed to remain in the U.S. continuously."
Minister Kim Jung-kwan also provided a similar response during a briefing held in Washington. He explained, "The 90% statement from Secretary Lutnick is understood, as Deputy Minister Kim said, to mean reinvesting in the U.S."
Earlier, Japan was also embroiled in a similar controversy. President Trump stated, "90% of the investment revenue will be acquired by the U.S.," which led to criticisms in the Japanese political arena regarding potential issues with the negotiations.
Japan announced plans to invest $550 billion in the U.S., with expected investment methods including equity, loans, and guarantees. The Japanese government explained that the equity investment method constitutes only about 1-2%. Therefore, it is argued that it would be impossible for the U.S. to acquire 90% of the fund's investment revenue.
Experts view President Trump or Secretary Lutnick's '90%' statement as political rhetoric. Professor Min Jeong-hoon of the National Diplomatic Academy's Department of American Studies stated, "The U.S. statement about holding 90% can be interpreted as a concept of reinvestment that keeps them 'in the field,'" and added, "It seems that they used such expressions to send a strong political message about continuing mid to long-term cooperation."