Lee suggests european-style tariff deal before summit

President Lee Jae-myung said Oct. 27 that “the Republic of Korea is not Japan,” noting that U.S.-Europe negotiations could offer a reference in ongoing tariff talks with Washington. Ahead of his summit with U.S. President Donald Trump, Lee proposed a European-style tariff deal focused on private-sector investment.

On the same day, Trump said it “would be great to meet” North Korean leader Kim Jong Un, suggesting he might extend his stay in South Korea if a U.S.-North Korea summit occurs.

In a Bloomberg interview published Monday, Lee said the United States would naturally seek to maximize its interests but warned this should not lead to outcomes disastrous for Korea. Regarding the $350 billion investment fund for U.S. projects, he said all aspects, including the amount, timing, methods of investment, and how profits and losses are shared, remain under discussion.

When asked if the U.S.-Japan tariff deal could pressure Seoul, Lee said Korea must reach a reasonable outcome based on its own circumstances, noting that the European model could provide a useful benchmark. The European Union reached its tariff agreement with Washington by pledging $600 billion in U.S.-bound investments. Unlike Japan, which relied on public funds, the EU allowed private companies and member states to invest, with financial backing from the bloc.

A senior government official said the EU model does not rely on direct cash investment, unlike Japan’s. The interview took place on Oct. 24, shortly after Presidential Policy Chief Kim Yong-beom returned from Washington following talks with U.S. Commerce Secretary Gina Raimondo.

Aboard Air Force One en route to Japan, Trump said he would be happ to meet Kim Jong Un. It marked his second comment in two days signaling openness to another U.S.-North Korea summit and urging a response from Pyongyang.


Hoon-Sang Park tigermask@donga.com