by supplychainreport
South Korea is preparing to finalize its trade agreement with the United States, using Japan’s recently implemented deal as a reference point, officials said Monday. The agreement is expected to include details on a $350 billion investment package.
Finance Minister Koo Yun-cheol said the outcome of Japan’s negotiations provides valuable insights for Seoul. “Because we know the outcome of Japan’s negotiations, we can negotiate with the U.S. based on it,” he said at a press conference. However, South Korea will not adopt the exact terms of Japan’s deal, which features a $550 billion investment package.
The trade agreement is expected to address tariffs, particularly for South Korean automakers who currently face 25% tariffs on U.S. car imports compared with Japan’s 15%. “We will consult with the U.S. in a way that meets the national interest as much as possible,” Koo said.
Negotiations are ongoing regarding the structure of the investment package, with South Korea exploring ways to launch investment projects in the United States effectively. Officials also said foreign exchange policy discussions will be included when the trade agreement is finalized.
Foreign Minister Cho Hyun noted that South Korea is taking a deliberate approach to ensure favorable terms, learning from Japan’s deal to avoid potential challenges. Authorities are preparing new strategies by October to adapt to evolving global trade dynamics and external changes, including tariffs.
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