As U.S. President Donald Trump said on the 27th that he would raise the tariff on Korean-made automobiles from 15% to 25%, Kim Jung-kwan, Minister of the Ministry of Trade, Industry and Resources, and Yeo Han-koo, head of the Office of the Minister for Trade, will visit the United States for consultations.
An official at the Ministry of Trade and Industry (MOTI) said, "Minister Kim, who is currently staying in Canada, will visit the United States after completing his schedule to meet with Minister Rutnik for consultations," adding, "Deputy Minister Yeo will also visit the United States soon to hold consultations with U.S. Trade Representative (USTR) Representative Jamieson Greer."
Initially, Minister Kim planned to visit Canada on the 26th to 27th (local time) to discuss defense industry cooperation, including a submarine project, and then visit the United States starting on the 28th. The presidential office said, "Minister Kim will visit the United States as soon as possible."
Earlier, President Trump said on his social media, Truth Social, "The National Assembly of Korea is not properly implementing the trade agreement (Deal) with the United States," adding, "I will raise the tariff on Korean-made automobiles, among other things, to 25%."
The Korean government was said to have not received an official notice or explanation of details from the U.S. government. A government official said, "It was not an issue that could have been anticipated," adding, "The Ministry of Economy and Finance and the Ministry of Trade, Industry and Resources are assessing the situation together and will respond jointly."
The government believes the "trade agreement" cited by President Trump as the reason for the tariff hike concerns a $350 billion investment 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 pending in the National Assembly's Planning and Finance Committee. The bill is facing difficulties as the ruling and opposition parties remain divided.
The opposition People Power Party says the National Assembly should ratify the trade agreement before handling the special act. It cites Article 60, Paragraph 1 of the Constitution, which says, "Treaties that impose a significant fiscal burden on the state or the people shall require the consent of the National Assembly for ratification." The ruling Democratic Party of Korea, however, says the Korea-U.S. trade agreement is a memorandum of understanding (MOU) without legal binding force, so National Assembly ratification is unnecessary. The burden on the foreign exchange market due to the strong dollar and securing funding are also obstacles.