Crisis Management for a Conflict with North Korea

Yonhap | English | News | Sept. 18, 2025 | UndeterminedTrade Issues and Numbers

South Korea's Trade Minister Yeo Han-koo met with U.S. Trade Representative Jamieson Greer in Washington on September 16, 2025, continuing negotiations over a bilateral trade deal originally struck in late July. This followed a recent meeting between South Korea's Industry Minister Kim Jong-kwan and U.S. Commerce Secretary Howard Lutnick.

The framework agreement reached on July 30 involves the U.S. lowering reciprocal tariffs on Korea and Korean autos from 25 percent to 15 percent, in exchange for Korea's commitment to invest $350 billion in the United States. South Korean President Lee Jae Myung and former U.S. President Donald Trump endorsed the deal during their August 25 summit. However, disagreements persist over funding the investment package and profit-sharing, with Seoul favoring loans and loan guarantees, while the U.S. administration prefers direct equity investments and claims 90 percent of profits after Korea recoups $350 billion.

A senior official at Seoul's presidential office stated on September 16 that South Korea would not hastily sign a trade deal that could harm Korean companies’ interests. The recent reduction of U.S. tariffs on Japanese autos to 15 percent from 27.5 percent has increased pressure on Korean negotiators, as Korean auto exports risk a competitive disadvantage. While the U.S. has agreed to lower tariffs on South Korean autos to 15 percent as well, the effective date of this adjustment remains uncertain amid ongoing negotiations.

During his U.S. visit, Minister Yeo also engaged with other U.S. officials to gather support for South Korea’s negotiating stance.