Minister Kim Jung-kwan of the Ministry of Trade, Industry and Energy said on the 4th that "we will sign a strategic investment memorandum of understanding (MOU) with the United States within a reasonable time."
Minister Kim attended a Cabinet meeting held at the Yongsan presidential office that day and said this while reporting follow-up procedures after the South Korea-U.S. tariff negotiations.
Kim said, "Within this month, together with the Ministry of Economy and Finance, we will push to introduce a bill to create a fund to implement the MOU," adding, "In the case of automobile tariffs, we will consult to have it take effect retroactively on the first day of the month in which the bill is submitted."
If this procedure is followed, the U.S. government's cut in tariffs on Korean-made automobiles (25%→15%) is expected to be applied retroactively based on the 1st of this month. Some argue that the retroactive date should be set as Aug. 7, when the reciprocal tariff was lowered to 15%.
Minister Kim also pointed out cautions in the follow-up process. He emphasized, "If the investment payment is not carried out, the United States can raise tariffs," adding, "Thorough risk management is needed in the execution process."
He added, "Provisions such as not discriminating against U.S. corporations when making digital-related legislation or policy decisions were included in the non-tariff sector agreements," and said, "I also ask for cooperation from the relevant ministries."
He went on to say, "Going forward, we will identify U.S.-bound investment projects under the MOU and hold a joint meeting of the South Korea-U.S. Free Trade Agreement (FTA) to implement the non-tariff-related agreed items."
Minister Kim also shared his reflections on the negotiations. He said, "We started negotiating on a 'tilted playing field,' and only managed to fix the degree of that tilt," adding, "Many people tell me I worked hard, but I do not feel refreshed and am left with a bitter taste."
He continued, "I am grateful that the president firmly held the center and trusted us to handle the negotiations," adding, "As our precious $350 billion is executed, we will do our utmost to ensure the principle of national interest first is thoroughly applied."