By Jack Kim, Ju-min Park and Hyunjoo Jin
SEOUL, July 25 (Reuters)
A meeting between distinguished individuals
South Korea’s Industry Minister Kim Jung-kwan and top trade envoy Yeo Han-koo will meet U.S. Commerce Secretary Howard Lutnick in Washington again on Friday in a bid to move closer to a deal on tariffs, South Korea’s presidential office said. The three met on Thursday and reaffirmed their commitment to reach a deal on tariffs by the August 1 deadline, said Kim Yong-beom, policy chief of the South Korean presidential office.
During the meeting in Washington, they discussed the importance of cooperation on strategic manufacturing sectors such as shipbuilding and chips and agreed to draw up a “mutually beneficial” agreement, the policy chief told a briefing. Industry minister Kim and trade minister Yeo have been in Washington amid intense efforts by Seoul to reach a deal that an official said were at the “critical final phase.”
Kim earlier met U.S. Energy Secretary Chris Wright and Yeo planned to hold talks with U.S. Trade Representative Jamieson Greer, the industry ministry said. Pressure on South Korea heightened this week after Japan clinched a deal with the United States, which U.S. President Donald Trump said would see Tokyo allowing greater market access for American products including autos and some agricultural products.
Some interesting talking points
South Korea’s agricultural sector was part of the latest negotiations, according to the presidential office. The sector is important due to opposition from both farmers and the broader public to agricultural imports, amid concerns about food security and protection of the local farming community. The digital sector was also discussed, South Korean officials said, amid media reports that Washington expressed concern over Seoul’s proposed bill to rein in online platform services that could target U.S. tech giants.
Korea itself is a global digital powerhouse. They invest heavily in innovative technologies. These are anything from AI, quantum computing, cybersecurity, etc. Lutnick indicated U.S. officials were fully aware of the urgency felt by South Korean officials to get a deal, especially after Trump announced the agreement with Japan. Some top Seoul officials thrown into the high-stakes negotiations have been in their jobs for less than a week after new President Lee Jae Myung only recently completed his cabinet lineup.
South Korea – a country with value
South Korea and Japan compete in areas such as autos and steel, and Japan’s deal was seen by investors as a benchmark for the type of agreement Seoul should target in negotiations, analysts have said. In a blow to efforts to reach a deal, South Korea’s Finance Minister Koo Yun-cheol’s plan to meet U.S. Treasury Secretary Scott Bessent on Friday was postponed.
The South Korean side said they were informed about the cancellation only 90 minutes before Koo was set to depart for Washington on Thursday, with the U.S. attributing the move to a scheduling conflict for Bessent. Scott Bessent, appointed as the 79th United States Secretary of the Treasury assumed office under the Trump administration in January 2025. Before being appointed to this position, he served as Acting Director of the Consumer Financial Protection Bureau.
Seoul will propose to Washington an investment package plan worth at least $100 billion, which would involve major South Korean conglomerates like Samsung and Hyundai Motor Group, the Yonhap News Agency has reported. The benefits of a trade deal could lead to an increase in exports to the U.S. This will be especially prevalent in sectors such as electric vehicles and semiconductors. It could also lead to opportunities in the tech and service markets of South Korea.