Protect the 15% Tariff Cap... Minister Kim Jeong-gwan Heads to the U.S.

Serial Meetings with Secretary Lutnick and Other U.S. Officials
Yeo Hankoo Also Visits D.C.; Final Negotiations Aim to Maintain 15% Tariff Cap
Korea-U.S. Shipbuilding Cooperation Center Inaugurated

Yonhap News Agency

Minister of Trade, Industry and Energy Kim Jeong-gwan is visiting Washington, D.C. to strengthen Korea-U.S. cooperation on trade and investment and to advance the implementation of strategic investment projects targeting the U.S. market. As the announcement of the results of the U.S. Section 301 investigation approaches, Minister Kim is scheduled to meet key members of the U.S. administration and Congress, including U.S. Secretary of Commerce Howard Lutnick, to discuss follow-up measures after bilateral tariff agreements, investment cooperation, and ways to expand collaboration in the shipbuilding industry.

Speaking to reporters at Incheon International Airport before departing on the 22nd, Minister Kim said, "The key objectives of this visit to the U.S. are the inauguration ceremony of the Korea-U.S. Shipbuilding Cooperation Center and specifics on the strategic investment projects for the U.S. market." He added, "The core agenda is to reach concrete agreement with the U.S. side on the content and schedule of these investment projects."

Minister Kim repeatedly underscored the significance of the inaugural ceremony for the Korea-U.S. Shipbuilding Cooperation Center, scheduled for July 23 (local time) in Washington, D.C. He noted, "It is a highly meaningful event, as the Korea-U.S. shipbuilding cooperation that we have pursued thus far is now gaining an official platform," and emphasized, "Given that key U.S. government officials, members of Congress, shipbuilding businesses from both countries, and members of Korea's National Assembly Korea-U.S. Friendship Caucus will participate, both governments are placing great importance on this occasion."

The Korea-U.S. Shipbuilding Cooperation Center is a follow-up measure to the 'Korea-U.S. Shipbuilding Partnership Initiative' memorandum of understanding (MOU) signed between the Ministry of Trade, Industry and Energy and the U.S. Department of Commerce in May. The center will serve as a hub supporting joint projects, technology cooperation, and supply chain collaboration between shipbuilding companies of both countries. As the U.S. pursues revitalization of its shipbuilding industry as a national strategy, experts point out that institutionalizing cooperation with Korea's shipbuilding sector, which leads the world in competitiveness, carries significant symbolic importance.

During this visit, the strategic investment projects promoted since the enactment of the Korea-U.S. Strategic Investment Special Act are expected to enter a full-fledged phase of implementation. The industrial sector believes that shipbuilding, nuclear power generation, energy infrastructure such as LNG, and advanced manufacturing—areas where the two countries have previously prioritized collaboration—will be the primary focus of deliberation.

Especially as the U.S. promotes shipbuilding as a national strategy, there is widespread anticipation that investment and technological cooperation in shipbuilding with Korea will become a central pillar of bilateral economic collaboration. Consequently, this trip is expected to lead to more concrete plans in shipbuilding cooperation. In addition, areas such as small modular reactors (SMRs), large-scale nuclear power supply chains, LNG production and export infrastructure, and advanced manufacturing including AI and semiconductors, are being considered as potential candidates for strategic investment projects.

During his stay, Minister Kim is set to meet with Secretary Lutnick, Secretary of Energy Chris Light, and others to discuss cooperation in the areas of trade, investment, resources, and energy. He also plans to engage with key U.S. lawmakers to explain the need for expanded Korea-U.S. economic cooperation and to conduct outreach activities aimed at deepening understanding of current trade issues between the two countries.

Yonhap News Agency

This visit has drawn particular attention as it comes just before the forthcoming announcement of the U.S. Section 301 investigation results. The U.S. is expected to introduce a new tariff structure under Section 301, while the Korean government maintains its position that the 15% tariff cap secured through last year’s Korea-U.S. negotiations must be upheld. The Ministry of Trade, Industry and Energy notes that, since the Section 301 investigation is a procedure intended to replace the previous mutual tariff agreements, it should not result in any additional burden. The Korean government has been consulting with U.S. counterparts to ensure that the balance of interests established in the previous agreements is not undermined. Both Minister Kim’s and Chief Negotiator Yeo’s consecutive visits to the U.S. are expected to reinforce this policy stance.

The issue of Coupang may also be brought up at the discussion table. On this topic, Minister Kim stated, "I expect it will naturally come up in our discussions," adding, "There have been claims about discrimination between Korean and U.S. companies, but if we provide adequate explanations, I believe the U.S. side’s misunderstandings will be resolved. We have always provided thorough explanations to the U.S. whenever issues have arisen, and we will continue to do so going forward."

He continued, "Regarding the Coupang case, our government has well-founded logic and evidence. We have continuously communicated this to the U.S. side, and I believe there is considerable mutual understanding with our counterparts."

Separately from Minister Kim, Chief Negotiator for Trade Yeo Han-koo is also visiting the U.S. to continue consultations on trade issues for the U.S. market. With Minister Kim overseeing strategic investment and industrial cooperation and Chief Negotiator Yeo focusing on tariffs and trade issues, the Korean side plans to proceed with consultations with the U.S., implementing follow-up measures to recent Korea-U.S. tariff accords and responding to the Section 301 investigation.

Minister Kim stated, "The government is actively pursuing strategic investment projects under the Korea-U.S. Strategic Investment Special Act," and added, "Through this visit to the U.S., we will further specify the direction for investment projects and ensure the Korea-U.S. tariff agreement is smoothly implemented, making every effort to maintain stability in bilateral trade relations."

This content was produced with the assistance of AI translation services.