Kim Jung-kwan returns to US, says Seoul never pressured to rush investment or face higher tariffs

Minister of Trade, Industry and Energy Kim Jung-kwan arrived at Dulles International Airport near Washington Sunday (local time) for talks on South Korea's US investment projects and tariffs.

Kim said the visit was prompted by the growing complexity of final-stage negotiations. "We had previously mentioned that we were thinking of announcing the projects around late August or early September, but as we approach the deadline, a variety of specific issues have been coming up at the working level," he said.

"We had been holding video conferences and working-level contacts to address those issues, but we reached a point where we needed to sit down and sort everything out at once — that's why I came," he added.

The visit is Kim's first trip to the United States in three weeks. He is expected to meet with US Commerce Secretary Howard Lutnick and other officials from the Trump administration.

Asked whether a late-August announcement of the investment projects was still feasible, Kim said negotiations were proceeding in detail toward that goal but that more issues had emerged than anticipated. "Please understand that I came here with the intention of resolving things one way or another, with late August as the target," he said.

South Korea secured a reduction in US tariffs from 25 percent to 15 percent last year through a trade agreement that included a pledge of $350 billion in investment in the United States. Of that total, $150 billion was earmarked for shipbuilding cooperation, and the two countries are still working out how to implement the remaining $200 billion.

When asked whether the Trump administration had pressured Seoul with threats of higher tariffs if it did not accelerate its US investment commitments, Kim said he was not aware of any such pressure. "I have never received that kind of pressure," he said.

He added that President Donald Trump had spoken since early this year about the need to move faster on investment. "We also feel the same sense of urgency — it's already been nearly a year — so we share the intent to pick up the pace, and we have been continuing our consultations," Kim said.

Concerns have emerged that tariffs on South Korean goods could exceed 15 percent if the United States imposes additional duties based on the results of its overproduction probe, on top of the 12.5 percent tariff on forced-labor grounds that Washington levied on South Korea last month under Section 301 of the Trade Act.

Asked whether the 15 percent tariff rate would hold even after the overproduction probe results are released, Kim said Commerce Secretary Lutnick and US Trade Representative Jamieson Greer had already indicated they would honor the spirit of the agreement the two sides reached during the forced-labor tariff process. "I will do my best without prejudging the outcome," he said.

On whether the investment project announcement could come before the United States releases its overproduction probe findings, Kim said he was not sure, but added that Washington had told Seoul the overproduction results would come around late August. "I get the sense it may take a bit longer than that," he said.

Asked whether a combined-cycle power generation project remained the leading candidate for the first US investment announcement, Kim said, "Wait and see — we are watching the situation as originally discussed."

Meanwhile, Kim said explaining the dismissal of Trade Negotiation Representative Yeo Han-koo to the Trump administration was not part of the purpose of his visit. "It would not be appropriate for me to personally explain a matter that falls under the appointing authority's prerogative," he said.

On concerns that Yeo's dismissal could create a gap in South Korea-US trade negotiations, Kim acknowledged that Yeo had handled much of the non-tariff and free trade agreement work but said the responsibilities would be carried on by Deputy Minister for Trade Park Jeong-seong and others. "Negotiations are not done by one individual — the entire organization works on them together," he said. "We will do our best to ensure there is no gap."