South Korea, U.S. accelerate talks on tariff-security package

With the August 1 deadline for the U.S. reciprocal tariff waiver imposed by President Donald Trump just two weeks away, South Korea and the United States are speeding up talks on a comprehensive tariff and security package. To secure tariff cuts or removals, U.S. negotiators are reportedly considering opening agricultural sectors, one of the non-tariff barriers they have long requested. At the same time, working-level discussions on the security package, including increased defense spending, are progressing steadily.

The South Korean government is reportedly considering sending a high-level delegation to Washington soon, including Yeo Han-gu, head of the Ministry of Trade, Industry and Energy’s trade negotiation division, and Wi Sung-lak, director of the National Security Office, to help ensure the leaders’ summit takes place by early next month.

According to the presidential office on July 15, talks on tariffs and security between South Korea and the U.S. are advancing simultaneously on multiple tracks. South Korea’s Ministry of Trade, Industry and Energy is leading the trade negotiations, while diplomatic and defense agencies handle discussions on the security package. “If only the security issues are resolved but trade matters remain unsettled, it cannot be considered a true agreement," a senior government official said. "Both areas must be comprehensively concluded.”

The Ministry of Trade, Industry and Energy is considering easing regulations in the livestock and agricultural sectors as a bargaining chip in tariff negotiations. Plans under review include increasing imports or opening markets for products such as beef, apples, and genetically modified potatoes, items that generally draw less public sensitivity in South Korea.

During a visit to Seoul by U.S. Deputy Assistant Secretary of State Kevin Kim, director-level talks between South Korean and U.S. diplomatic and defense officials on July 10 and 11 reportedly included discussions on increasing defense spending as part of the U.S. effort to modernize the South Korea-U.S. alliance. The South Korean government is considering options, including gradually raising defense spending to about 3.5 percent of gross domestic product, representing the direct cost portion of the 5 percent GDP target adopted by NATO members.

The government is also seeking to hold high-level talks with the United States before the tariff waiver expires. In addition to the possible visit by Yeo Han-gu, officials are considering a joint trip by Deputy Prime Minister and Finance Minister nominee Koo Yun-cheol and Industry Minister nominee Kim Jung-kwan, depending on the outcome of their confirmation hearings scheduled for July 17.


Kyu-Jin Shin newjin@donga.com