It was reported that two weeks before the United States notified of a tariff increase, it sent a letter to the Korean government urging it to implement follow-up measures to the agreement in the joint fact sheet signed by the two countries in November last year.

According to relevant ministries on the 27th, a U.S. letter under the name of James Heller, chargé d'affaires at the U.S. Embassy in Korea, was delivered on the 13th to Bae Kyung-hoon, Deputy Prime Minister and Minister of Science and ICT. Those copied were said to include Kim Jung-kwan, Minister of the Ministry of Trade, Industry and Resources, Cho Hyun, Minister of Foreign Affairs, and Ju Biung-ghi, chair of the Fair Trade Commission.

U.S. President Donald Trump delivers congratulatory remarks at a special leaders' dinner hosted by President Lee Jae-myung in the Grand Ballroom of the Hilton Hotel in Gyeongju, North Gyeongsang Province, on October 29 last year. /Courtesy of the Presidential Office

The letter was said to include concerns mainly about regulations related to digital services, such as the online platform act. This was also included in the joint fact sheet released by the leaders of Korea and the United States on Nov. 13 last year. It contains the phrase, "Korea and the United States commit to ensuring that U.S. corporations are not discriminated against or faced with unnecessary barriers in laws and policies related to digital services, including network usage fees and online platform regulations."

On this, the presidential spokesperson's office said, "The letter the U.S. side sent to the Minister of Science and ICT (MSIT) and others mainly says not to discriminate against U.S. corporations on digital issues," adding, "This is not directly related to President Trump's mention that 'the Korean National Assembly did not carry out the legal procedures necessary to implement the trade agreement between Korea and the United States,' which he cited as the reason for the tariff increase."

However, some say that although the letter mainly addressed discrimination in digital regulations, it was effectively an advance warning urging implementation of Korea-U.S. trade and investment agreements, including investment in the United States. The fact sheet centers on the United States lowering tariffs on Korean automobiles and other goods to 15% on the condition that Korea makes $350 billion in investment in the United States.

Earlier, on the 26th (local time), U.S. President Donald Trump posted on his social media that "the Korean legislature is not honoring the trade agreement (Deal) between the United States and Korea," and said he would raise all reciprocal tariffs on Korean automobiles, lumber, pharmaceuticals and other items from 15% to 25%.

The "trade agreement" cited by President Trump as the reason for the tariff increase appears to concern the $350 billion investment agreement in the United States. The Special Act on Strategic Investment Management between Korea and the United States (Special Act on Investment in the United States), which provides the legal basis for investment in the United States, is currently pending in the National Assembly's Planning and Finance Committee.

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