Minister Kim Jeong-gwan of the Ministry of Trade, Industry and Energy returned on the 14th after a visit to the United States for follow-up consultations on the U.S.-Korea tariff negotiations. Kim was said to have met U.S. Commerce Secretary Howard Lutnick in New York to coordinate details related to the negotiations with the United States, but did not comment on any progress in the talks.
After arriving at Incheon Airport early that morning, Minister Kim avoided answering when reporters asked about the talks with the United States, saying they were "ongoing." He added, "As the president said, we are negotiating to protect the national interest and minimize the burden on corporations." As a result, some analysts say the two sides may have failed to narrow differences on specifics such as ▲ the method of investment in the United States ▲ the method of revenue sharing.
Earlier, in the tariff talks in Jul. of the 4th, the United States and Korea agreed to lower the tariff the United States planned to impose on Korea from 25% to 15%. Instead, Korea agreed to pursue $350 billion (about 486 trillion won) in investment in the United States.
Since then, however, the two sides have been at odds after the United States moved to exercise full authority over Korea's U.S.-focused fund. Korea is seeking to minimize the share of direct investment in the United States and reduce its burden through guarantees. In contrast, the United States is strongly demanding, as it did with Japan, that Korea increase the share of direct investment.
Japan recently included in its agreement with the United States a provision that, until the recovery of the invested principal, revenue would be split equally, but after recovery, the United States would take 90% of the revenue. It also included a condition that if President Donald Trump designates an investment destination, the investment must be executed within 45 days, and if this is not followed, the tariff will be restored to its original level.