SEOUL, October 15 (AJP) -Senior South Korean government officials are back in Washington amid hints of progress in talks over a long-stalled trade deal that could reshape tariff policies and foreign exchange safeguards tied to a pledged $350 billion investment package.
Presidential policy chief Kim Yong-beom and Industry Minister Kim Jung-kwan will join Trade Minister Yeo Han-koo in the U.S. capital this week to seek a breakthrough, as delays in negotiations have begun weighing on the economy—fueling forex market volatility, hampering trade and investment flows, and denting national credibility.
A recent report by NICE Credit Rating estimated Hyundai Motor Group could face an additional annual burden of 8.4 trillion won ($6 billion) under the current 25 percent tariff rate, compared with the 15 percent levied on European and Japanese rivals.
Finance Minister Koo Yun-cheol, already in Washington for the G20 Finance Ministers and Central Bank Governors Meeting and the IMF-World Bank Annual Meetings, plans to raise Seoul’s case directly with U.S. Treasury Secretary Scott Besant.
Industry Minister Kim has been shuttling between Seoul and Washington for talks with U.S. Commerce Secretary Howard Lutnick and reported recent developments to the presidential office during the Chuseok holiday. The presidential office earlier this week hinted that Washington had shown “some response” to Seoul’s revised proposals on the investment package.
Foreign Minister Cho Hyun told a legislative hearing on Monday that Washington was insisting on a $350 billion FDI commitment, rejecting loans or guarantees—a condition with major implications for Korea’s finances. Such an investment would account for more than 80 percent of Korea’s $420 billion foreign exchange reserves as of September.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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