(Jan 30): South Korea’s industry minister met with the US commerce chief in Washington but failed to make progress in quelling fresh trade friction, with the two sides agreeing to resume talks Friday as Seoul seeks to head off US President Donald Trump’s recent threat to raise tariffs.
South Korean Industry Minister Kim Jung-kwan, who held talks with US Commerce Secretary Howard Lutnick Thursday local time, said he reiterated Seoul’s commitment to follow through on agreed investment pledges, including passage of legislation needed to facilitate Korean investment in the US, Yonhap News reported.
The meeting follows Trump’s warning earlier this week that he could restore tariffs of up to 25% on imports of Korean goods — including automobiles, timber and pharmaceuticals — citing delays in Seoul’s implementation of investment pledges linked to last year’s trade agreement.
The trade friction is testing ties between the two longtime allies. It comes as South Korea is conducting a wide-ranging investigation into a data breach at Coupang Inc, a US-listed and headquartered e-commerce company, an inquiry that has drawn criticism from some shareholders.
South Korean officials have sought to play down speculation that the tariff dispute is linked to the Coupang probe. Foreign Minister Cho Hyun said on Thursday that the tariff issue is unrelated to the Coupang case.
Separately, Washington has released a new defence strategy signaling a potential reduction in American military support to deter North Korea’s nuclear ambitions, while keeping South Korea on its monitoring list of economies whose currency practices and macroeconomic policies merit close attention.
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South Korea has dispatched senior ministers to reassure the US of its commitment to the trade deal. Trade Minister Yeo Han-koo is scheduled to meet his US counterpart, Jamieson Greer, in an effort to defuse the dispute.
The White House has pointed in particular to the absence of the so-called Special Law on Strategic Investment with the US, which is intended to underpin Korea’s investment pledges. South Korean officials say the tariff threat reflects US frustration with the pace of implementation rather than any breach of the agreement, and is aimed at pushing Seoul to move faster.
Harold Rogers, Coupang’s interim head of Korea operations, is scheduled to appear before police at 2pm local time Friday, Yonhap News reported. The summons, following repeated requests from investigators, will mark the first time Rogers is questioned by the police over the data breach, according to local media.
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Meanwhile, the US Treasury Department said South Korea remains on its monitoring list. The Korean government said it will maintain close communication with the Treasury to deepen mutual understanding over foreign-exchange markets and support currency stability.
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