US Democrats Probe Korea’s Base Group Over $2 Million Payment to Trump: “Suspected Quid Pro Quo for Tariff Relief”

Democratic senators in the United States have launched an investigation into a USD 2 million payment made by Korea-based Base Group to the family business of U.S. President Donald Trump. Lawmakers raised suspicions that the transaction could have been intended to ease the company’s burden of anti-dumping tariffs, as a Base Group affiliate faces the risk of being hit with high tariffs.

Associated Press Yonhap News

On August 6 (local time), Democratic Senators Elizabeth Warren (Massachusetts), Richard Blumenthal (Connecticut), and Andy Kim (New Jersey) sent a public letter demanding that Sungjip Kim, Chairman of Base Group, submit an explanation and relevant documents related to the USD 2 million payment to President Trump’s side, by August 21.

Earlier, The New York Times reported that Base Group, whose affiliate Korea Aluminium was under a U.S. trade investigation, paid USD 2 million last year to Trump’s family business, the Trump Organization. According to President Trump’s annual financial disclosure, the payment was recorded as a “nonrefundable development fee” relating to a “letter of intent.”

The timing of the payment is the issue Democratic lawmakers highlighted. In 2023, U.S. regulators determined that Korea Aluminium, a subsidiary of Base Group, attempted to circumvent anti-dumping tariffs meant to block imports of low-priced Chinese aluminium. Based on this determination, the U.S. Department of Commerce imposed tariffs on Korea Aluminium last year. Following a preliminary ruling from the Commerce Department on July 13, the tariff rate applied to Korea Aluminium’s exports of foil to the United States could rise nearly fourfold to 105.8%.

The lawmakers argued that Base Group would gain substantial financial benefit if the Trump administration were to ease Korea Aluminium’s tariff burden. They stated, “The payment took place at a time when Base Group’s subsidiary, Korea Aluminium, had a significant financial interest in the Commerce Department’s decision regarding anti-dumping tariffs on its exports to the United States,” and noted, “The payment was not publicly disclosed and the timing is highly questionable.”

They added, “This raises questions about whether Base Group directly paid Trump’s business to influence Commerce Department proceedings or to secure preferential regulatory treatment, such as exemptions on tariffs, in favor of Korea Aluminium.”

In addition, the senators requested answers on a total of 12 points, including the timing and manner of the USD 2 million payment; whether President Trump was personally involved; whether there were any transactions with Trump’s family or related businesses; and whether any gifts were provided to the Trump family.

However, both the Trump side and Base Group argued that the transaction was a legitimate business deal. The Washington Post reported that the Trump Organization called “any suggestion that this deal was driven by anything but proper business considerations entirely fictitious.” Base Group had previously told The New York Times that the funds were related to the expenses of a yet-to-be-announced golf course development and were unrelated to the trade dispute involving Korea Aluminium’s exports to the United States.

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