Lee says Korea-U.S. tariff deal may delay

President Lee Jae-myung said a U.S. tariff deal will take some time, suggesting a final agreement could be delayed until after his Nov. 29 summit with U.S. President Donald Trump.

Lee’s comment indicates the two sides remain divided over the amount of cash South Korea would contribute to its proposed $350 billion U.S. investment fund.

In a CNN interview aired Oct. 23, Lee was asked if the talks could conclude during the Asia-Pacific Economic Cooperation summit. He said he trusted the United States would act reasonably.

When asked about U.S. criticism that the talks resembled “mafia-style extortion,” Lee said he expected a reasonable outcome because the two countries are allies with shared common sense. The remarks suggested a tariff deal at the APEC meeting in Gyeongju later this month may be difficult to finalize.

Washington has demanded that over half of the $350 billion fund be provided in cash, while Seoul has proposed contributing about 10 percent in cash and covering the rest through loans and guarantees, leaving a wide gap between the two sides.

The presidential office said the interview was recorded on Oct. 22, before Presidential Policy Chief Kim Yong-beom and Industry Minister Kim Jung-kwan began talks in Washington with U.S. Commerce Secretary Howard Lutnick. After the talks, Kim told reporters there had been some progress but further discussion was needed. He was scheduled to return to Seoul early Oct. 24 to brief President Lee.


Hoon-Sang Park tigermask@donga.com