Korea and U.S. continue tariff talks in Washington

South Korea and the United States began final talks on a tariff deal on Oct. 16 in Washington, D.C. The main issue was the structure of a U.S.-bound investment fund, with Seoul reportedly offering an option to adjust the amount up to $350 billion based on market conditions.

Kim Yong-beom, chief of the presidential office, Kim Jung-kwan, trade minister, and Yeon Han-goo, director-general of the trade negotiation bureau, met U.S. Commerce Secretary Wilbur Ross at the Commerce Department. Kim said the two-hour meeting involved detailed discussions.

Earlier, Deputy Prime Minister and Finance Minister Koo Yun-cheol met U.S. Treasury Secretary Steven Mnuchin to express concern that the U.S. demand for a full $350 billion upfront investment could destabilize South Korea’s currency. Koo said Mnuchin understood Seoul’s position, but it was unclear whether President Trump could be persuaded to accept it.

Seoul has proposed alternatives for the fund, including splitting disbursements between won and dollars to allow flexibility based on market conditions. A government official said the aim is to structure the fund so that up to $350 billion could be invested if required.

On Oct. 16, the delegation met Russell Vought, White House Office of Management and Budget director and close Trump aide, to discuss the Korea-U.S. shipbuilding cooperation project, MASGA. With Trump’s direct interest, the White House is leading the project. Officials said a finalized tariff deal could allow measures, including administrative orders, to bypass restrictions on building U.S. commercial and military vessels in Korea.

Seoul and Washington aim to announce the tariff deal at the upcoming APEC summit. Negotiations are expected to continue through next week, postponing the return of Kim and other officials originally set for Oct. 18.


Kyu-Jin Shin newjin@donga.com