Seoul, Sep 17
South Korea and the United States are working to find a win-win solution in their follow-up trade negotiations, Seoul's industry minister has said, calling for patience over the deal that he said may reshape Korea's future.
Industry Minister Kim Jung-kwan said the bilateral negotiations had hit an impasse but are currently in a "back-and-forth" process to create a "win-win" solution for both sides, noting the Seoul government will continue negotiations with Washington despite concerns over the framework trade agreement reached between the two countries in late July, reports Yonhap news agency.
"The United States today is not the country we knew 10, 20 years ago. We are facing the new and reborn United States," he said in a press conference.
"We are playing a tough ping-pong match ... to reach a final deal that could be a win-win for both sides," added Kim, referring to his latest meeting with U.S. Commerce Secretary Howard Lutnick in the U.S. last week.
Under the trade deal signed July 30, South Korea agreed to invest US$350 billion in the U.S. in exchange for the U.S. lowering its reciprocal tariffs on South Korea to 15 percent from the initially proposed 25 percent and also cutting its tariffs on Korean cars to 15 percent from the current 25 percent.
Concerns, however, have brewed since, reportedly due to differences over details of Korea's investment pledge, with Seoul seeking to comprise the planned investment mostly with loans and credit guarantees, while the U.S. is demanding direct investment.
"Some hold concerns that the U.S. will take all of the $350 billion investment, but that is not the system," Kim said, noting the investment projects will also help Korean companies.
Regarding opinions that Korea should provide financial support to local companies and just face a 25 percent tariff instead of signing an unfair trade agreement, Kim said the government will continue to hold negotiations with the U.S., stressing that Seoul's relationship with Washington may be "crucial" to the country's future.
Asked about the recent immigration raid on hundreds of South Korean nationals by U.S. immigration authorities, Kim said Lutnick has vowed to "fix" immigration issues related to Korean investment in the U.S. during their latest meeting in New York.
"Lutnick expressed regret over the issue (of the recent immigration raid on South Koreans), using the word 'fix,'" Kim said.
"It would have been best if the (immigration raid) incident did not happen at all," he added, noting that Washington seemed very "disconcerted" over the issue. "I know that the U.S. deputy secretary of state, who recently visited Korea, also expressed regret."
Kim's comments came amid criticism in Korea over U.S. immigration authorities' raid on the battery plant in Georgia, operated by a joint venture between Hyundai Motor Co. and LG Energy Solution Ltd., in early September, which led to the detainment of more than 300 Korean nationals.
The Koreans, except for one who decided to stay in the U.S., returned home last week in the form of "voluntary departure" following their release.
Industry minister stressed the need to move forward with a plan to build two new nuclear power plants and one small modular reactor to respond to future energy demand.
The projects were confirmed under the 11th basic plan on electricity supply and demand for 2024 to 2038, which was finalized in February, but the environment minister recently hinted at halting such plans, calling for a public review of the projects.
Under the government reorganization plan announced last week, the environment ministry will be expanded to take on energy policy tasks currently conducted by the industry ministry.
"As the industry minister, I have to say we need to build new nuclear reactors for the stabilization of energy prices and energy supply ... anticipating the energy demand in 2035 and 2036," Kim stressed.
Asked about the controversial dispute settlement deal between the state-run Korea Hydro & Nuclear Power Co. (KHNP) and U.S. energy firm Westinghouse, Kim said his ministry is conducting an investigation into the case to see whether the deal was in accordance with proper procedures, but the matter should be approached from the perspective of "business."
The industry ministry launched an investigation into the deal after media reports suggested that it may prohibit the KHNP from bidding for new power plant projects in North America and the European Union, except for the Czech Republic.
—IANS
— IANS
Reader Comments
The immigration raid on Korean workers is concerning. Even if they're fixing it now, such actions create distrust. Countries should treat foreign workers with dignity and respect.
$350 billion investment is massive! Hope Korean companies actually benefit from this deal and it's not just one-sided. The loan vs direct investment debate shows how complex these negotiations are.
Interesting to see how countries navigate trade in the current global scenario. The "new and reborn United States" comment says a lot about changing dynamics. Every nation needs to adapt to these shifts.
The nuclear power plant discussion is the most important part here. Energy security is crucial for any nation's development. Hope they make the right decisions for long-term sustainability.
While I appreciate the diplomatic efforts, I'm concerned about the power imbalance in such negotiations. Smaller economies often have to make more concessions. Hope South Korea gets fair treatment.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.