Kim Yong-beom, the Deputy Minister of the Presidential Office, noted on the 3rd regarding the Korea-U.S. trade negotiations that Korea's pledge of $350 billion in investment in the U.S. is "not a structure that just throws out money unconditionally, but rather investing in commercially meaningful projects." He also reiterated that "there will be no additional openings for rice and beef."
Kim said during his appearance on KBS's "Sunday Diagnosis" that "the U.S. claims it decides all investment destinations, but that's just a political expression; it's a promise between sovereign nations, and which country would invest unconditionally just because the counterpart asks for money?"
Earlier, the two countries agreed on a mutual tariff of 15%, with Korea agreeing to create a $350 billion investment fund in the U.S. Of this, $150 billion is funds related to the Marine Aid for Shipbuilding Agreement (MASGA) project, while the remaining $200 billion will be invested in strategic sectors including semiconductors, batteries, bio, nuclear power, and critical minerals.
Kim also emphasized that regarding the operation of the investment funds for the U.S., "the investments made in a state of not knowing which projects to invest in will amount to less than 5%, which is a very small proportion," adding that "the rest will not be unconditional investments but rather investments in commercially meaningful projects."
He stated that, "If we determine that a project is appropriate, then organizations like our trade insurance corporation or the Export-Import Bank will provide guarantees or loans," adding that "ultimately, the creation of the $350 billion investment fund should be interpreted as setting the 'guarantee limit' at $350 billion." He noted that the actual scale of investments depends on the judgments of the private sector and financial institutions.
He emphasized that domestic corporations should actively participate in the $350 billion fund. Kim remarked that "even just the MASGA project will involve projects such as U.S. warship construction, so shouldn't our companies be involved?" He added that "in the case of equity investment, we shouldn't think that it will be entirely handled by state-owned banks. The private sector must participate significantly, and it is expected that they will actually join."
Regarding concerns raised about further openings for agricultural products through 'improvement of quarantine procedures' following the Korea-U.S. trade negotiations, Kim clearly stated, "There will be no additional openings for rice and beef. That is a clear fact," emphasizing that "while there may be technical discussions to reduce quarantine procedure steps, there will be no additional expenses incurred by the public for rice, beef, and other items that they are concerned about."
When asked whether the U.S. might demand additional openings for agricultural products at a future Korea-U.S. summit, Kim reiterated, "All matters related to trade have been settled this time."
Kim described the decision to impose a 15% tariff on automobiles despite being a signatory of the Korea-U.S. Free Trade Agreement (FTA) as "a painful point," stating that "the Korea-U.S. Free Trade Agreement has become half-hearted." Korea, which previously enjoyed tariff exemptions under the Korea-U.S. FTA, agreed to a 15% tariff in this trade negotiation. Japan also agreed to a 15% tariff through negotiations with the U.S., but it had already been applying a 2.5% tariff prior to the negotiations.
Kim also shared anecdotes following the negotiations, stating, "I don't think the U.S. could have imagined that Korea has made significant research and proposals in various areas related to shipbuilding," and added that "if it weren't for shipbuilding, the negotiations would have been stagnant."
In fact, the Korean side designed a 'hat' symbolizing the MASGA project, bringing 10 to the U.S. to directly explain the MASGA package to U.S. Secretary of Commerce Howard Lutnick, who reportedly reacted, saying "Great Idea."
The visits of executives from major corporations such as Samsung Electronics, Hyundai Motor, and Hanwha Group to the U.S. during these negotiations also caught attention. Kim explained, "Through private channels, we sufficiently conveyed that 'Korea has presented the best proposals.'"