Koo Yun-cheol, deputy prime minister for the economy and Minister of the Ministry of Economy and Finance, said on the 17th regarding the South Korea-U.S. tariff agreement that "if it goes through National Assembly ratification, a problem arises in which only Korea becomes (legally) bound."
Deputy Prime Minister Koo said at a full session of the National Assembly's Strategy and Finance Committee that "if you look at the $250 billion memorandum of understanding (MOU) on investment in the United States, as an administrative agreement, the provisions themselves are considered nonbinding," and stated accordingly.
Deputy Prime Minister Koo also stressed that ratification would be a burden when it comes to the timing of lowering automobile tariffs. Koo said, "If (applied retroactively) the automobile tariff could be lowered starting Nov. 1, but the longer ratification takes, the more disadvantageous it could be," and added, "The United States would not bear any obligations later, while Korea would have to continue bearing obligations."
He added, "There are many provisions (in the MOU) that allow flexible adjustments depending on the situation, and the (annual) $20 billion investment cap can be lowered if there is an impact on the foreign exchange market," and explained, "It is highly likely to apply during the term of U.S. President Donald Trump, but if ratified, there is also the issue that it would be fully (applied) even after that."
When the People Power Party pressed, asking, "Can you push ahead with an agreement or treaty with fiscal burdens without ratification?" Deputy Prime Minister Koo answered, "I am sorry that we could not reach a better deal, but we did our best under the circumstances at the time."
In response to criticism that the MOU only heightens risks on the Korean side, Koo countered, "We have put in many overlapping safeguards, and we are not handing over $200 billion for free." He went on to explain, "Even excluding shipbuilding, the investment targets are in areas where Korea has competitiveness, such as energy, semiconductors, and pharmaceuticals."
Deputy Prime Minister Koo emphasized that the MOU could also have positive effects on domestic industry and employment. Koo said, "If our corporations participate, our workers will receive wages, and if our corporations generate revenue, those dollars will come in, so I believe a virtuous cycle is entirely possible."