Did South Korean Industry Minister Achieve Progress in US Trade Talks?
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Synopsis
In a crucial diplomatic mission, South Korean Industry Minister Kim Jung-kwan met with US Commerce Secretary Howard Lutnick to discuss the July trade agreement. The outcome remains uncertain, increasing tensions over tariffs and investments.
Key Takeaways
- South Korea pledged US$350 billion in investments to the US.
- Tariffs on South Korean goods are set to decrease from 25% to 15%.
- Negotiations are currently at an impasse.
- The trade agreement was initially established in July 2023.
- Failure to finalize the agreement could lead to significant tariffs.
Seoul, Sep 14 (NationPress) Industry Minister Kim Jung-kwan returned home on Sunday following a visit to the United States, where he engaged in follow-up discussions with US Commerce Secretary Howard Lutnick regarding the bilateral trade agreement finalized in July.
Kim's trip, which began on Thursday, aimed to resolve discrepancies concerning the terms of the trade deal, wherein South Korea committed to investing US$350 billion in the US in return for a reduction of reciprocal tariffs on South Korean goods from 25 percent to 15 percent.
The two officials met at a confidential site in New York, but it remains uncertain if any substantial advancements were made.
Upon landing at Incheon International Airport, the main entry point west of Seoul, Kim refrained from addressing questions from the press regarding the negotiation results.
The trade agreement was first established in July and broadly reaffirmed during last month’s summit in Washington between President Lee Jae Myung and US President Donald Trump.
However, the specifics of the investment plan are still unresolved, as Kim Yong-bum, South Korea's presidential chief of staff for policy, recently stated that both sides are currently at an impasse.
Lutnick indicated on Thursday that South Korea must either accept the bilateral trade framework negotiated in July or face significant tariffs, highlighting the deadlock in finalizing the agreement’s details.
“The Koreans didn’t sign when the president… came to the White House. He didn’t sign the piece of paper,” Lutnick mentioned in a CNBC interview, referring to the visit by Korean President Lee Jae Myung to Washington for a summit with President Trump on August 25.
Point of View
It's vital to emphasize the ongoing efforts of the South Korean government to secure favorable trade terms with the US. The outcome of these negotiations is crucial not only for bilateral relations but also for the economic stability of South Korea. We maintain an unbiased perspective, focusing on facts and the potential impact of these discussions.
NationPress
14/09/2025
Frequently Asked Questions
What were the main topics discussed in the trade talks?
The discussions primarily revolved around the details of the bilateral trade agreement, including tariff reductions and South Korea's commitment to significant investments in the US.
What is the current status of the trade agreement?
The trade agreement remains unresolved, with both sides at an impasse regarding specific terms and investment plans.
Who were the key figures involved in the negotiations?
The negotiations involved South Korean Industry Minister Kim Jung-kwan and US Commerce Secretary Howard Lutnick.
What are the potential consequences of not reaching an agreement?
If an agreement is not reached, South Korea may face steep tariffs on its goods, impacting trade relations significantly.
When was the initial trade agreement reached?
The initial trade agreement was concluded in July 2023.
