South Korea’s top trade envoy Yeo Han-koo has departed for Washington on Sept 15 for follow-up tariff negotiations, as Seoul and Washington struggle to finalise the terms of a broad trade agreement first announced in July.
Reuters reported that talks have bogged down over a proposed US$350 billion investment fund, with Seoul balking at conditions similar to those in a recent US-Japan deal, citing potential disruptions to its foreign exchange market.
Yeo’s trip follows Industry Minister Kim Jung-kwan’s recent visit to Washington, which ended without tangible progress. Local media have raised concerns that negotiations may have hit an impasse.
President Lee Jae Myung has vowed not to sign any agreement that compromises South Korea’s national interests. “If it doesn’t benefit us, there’s no point in signing it,” Lee said last week.
The finance ministry said it was discussing measures with Washington to minimise market impact from the investment package, but would not confirm whether a currency swap line was among them.
The negotiations come at a sensitive time, after a US immigration raid at a Hyundai Motor battery plant in Georgia sparked outrage in South Korea, a key US ally. Images of Korean workers in shackles deepened public unease just as trade relations face new strain.
US President Donald Trump has sought to reassure foreign investors, saying he supports companies bringing in experts temporarily to train US workers in advanced manufacturing.
