Yeo Han-koo, head of trade negotiations at the Ministry of Trade, Industry and Energy, said on the 19th, "In the follow-up consultations after the Korea-U.S. trade talks, we explained to the United States as much as possible that Japan and Korea are different."
After returning from a trip to the United States, the Deputy Minister met with reporters at Incheon International Airport early that morning and said, "We met with the United States Trade Representative (USTR) and key members of Congress to discuss the overall negotiation situation and to resolve our people's visa issues."
At the end of Jul., Korea and the United States concluded a trade deal centered on lowering mutual tariffs and auto tariffs from 25% to 15%, respectively, and having Korea carry out $350 billion (about 486 trillion won) in investment in the United States. However, differences arose over specific implementation measures such as revenue sharing, stalling the talks.
The United States is reportedly demanding that Korea adopt a Japan-style approach to investment in the United States. Japan pledged $550 billion (about 763 trillion won) in investment in the United States, agreed to allow the United States to exercise control over investment decisions, and consented to hand over 90% of the revenue generated after recouping the investment to the United States.
With the United States and Japan finalizing their negotiations, the U.S. tariff on Japanese automobiles was lowered from 27.5% to 15%. In contrast, as follow-up consultations between Korea and the United States have been delayed, the export tariff on Korean-made automobiles to the United States remains at 25%.
To break the stalemate, Minister Kim Jeong-gwan of the Ministry of Trade, Industry and Energy visited the United States from the 11th to the 14th and met with U.S. Commerce Secretary Howard Lutnick to discuss follow-up negotiations and visa issues following the detention of Koreans. The Deputy Minister then continued a visit to the United States from the 15th to the 19th.
The government maintains that it is difficult to accept the United States' excessive demands. At his first press briefing on the 16th, the Minister, responding to a question about the talks with the United States, said, "(During the negotiations) I sometimes pound the table and raise my voice," adding, "This process is being repeated so both sides can 'win-win.'"