Kim Jeong-kwan, Minister of Trade, Industry and Energy, said on the 4th regarding the results of the Korea-U.S. trade negotiations, "The unprecedented 15% tariff will significantly impact the profitability of export corporations, especially small and medium-sized corporations, compared to local U.S. companies."
On the same day, Minister Kim presided over a "Korea-U.S. Trade Strategy Roundtable" meeting at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, and stated, "Although we made our best efforts until the end to secure a 12.5% tariff on automobiles and to ease steel tariffs, I feel very regretful that we did not meet the industry's expectations."
He noted, "We have prevented the worst-case scenario and resolved short-term export uncertainties," adding, "We will closely analyze the impacts on our exports and sectors and prepare support measures."
Minister Kim emphasized, "What I felt deeply during this negotiation process is that we must overwhelmingly enhance the fundamental competitiveness of our industries to withstand any external shocks."
He added, "In terms of strengthening export competitiveness and diversifying markets, we will pursue follow-up measures in response to U.S. tariffs, such as resolving export obstacles and discovering alternative markets, in close communication with the industry."
Furthermore, he remarked, "The global trade environment has entered an era of 'new normal' where national prioritization is competitively spreading, using markets and technologies as weapons," asserting, "We will also diligently pursue a mid-to-long-term strategy to secure industrial competitiveness in response to this."
He added, "In the future, the government will prioritize national interests and manage trade relations with the U.S. stably," and emphasized, "We will make every effort to eliminate management uncertainties for our corporations."
The meeting was attended by representatives from industry-specific associations, including automobiles, semiconductors, batteries, shipbuilding, steel, and bio, as well as economic organizations such as KORCHAM, Korea International Trade Association, Korea Economic Research Institute, Korea Federation of Small and Medium Enterprises, Korea Institute for Industrial Economics & Trade, and Korea Institute for International Economic Policy (KIEP).
On the 30th of last month (local time), Deputy Prime Minister and Minister of Economy and Finance Ku Yoon-cheol, Minister Kim, and Yeo Han-koo, head of the Ministry of Trade, Industry and Energy's trade negotiation office, agreed with U.S. President Donald Trump at the White House in Washington, D.C., to reduce the mutual tariff and automobile tariff from the existing 25% to 15%. Instead, they decided to create an investment fund totaling $350 billion for shipbuilding and strategic industries.
An official from the Ministry of Trade, Industry and Energy stated, "We will manage trade issues with the U.S. stably based on the principle of prioritizing national interests," and added, "We plan to implement follow-up measures related to tariff negotiations without delays while communicating with the industry."