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Korea Herald
7 days ago
- Business
- Korea Herald
[Editorial] Knotty trade issue
US said to demand Korea further open agricultural, livestock markets Further opening of the Korean agricultural and livestock markets has emerged as a major issue in Korea's tariff and trade negotiations with the US. Trade Minister Yeo Han-koo said that trade negotiations on the agricultural sector always come with pain, but that there are some parts in which the country can make strategic decisions for a broader trade deal. He made the remark Monday during a meeting held with reporters to brief them on the progress of tariff negotiations he had during his visit to the US. Washington is said to demand that Seoul increase rice imports from the US; import American beef from cattle aged 30 months or older and living modified organism potatoes, a genetically modified crop; and ease quarantine on US apples. The Korean government is expected to finalize its proposals this week for tariff negotiations with the Donald Trump administration. Increasing the imports of rice and beef, among others, is a socially and politically sensitive matter for Korea. It is directly related to the foundation of the country's agricultural industry, its food sovereignty, the existence of its farm villages and regional economy Opposition from farmers is already strong. For these reasons, Korea has not fully opened its rice market. It obligatorily imports 408,700 metric tons of rice each year from five countries, including the US, at a low tariff rate of 5 percent. The figure amounts to about 11 percent of the 3.7 million tons that Korea produces at home annually. The US quota of some 132,000 tons takes up about 32 percent of Korea's rice imports. Korea imposes a 513 percent tariff on imports in excess of the quota, effectively banning imports of rice that go beyond the obligatory minimum. Unlike Japan, Korea has not experienced a shortage of rice. Rather, there is a surplus. Arguments for an increase in rice imports are less convincing here. Korea has only imported US beef from cattle younger than 30 months since fear of mad cow disease sparked nationwide protests against US beef imports in 2008. Despite these restrictions, Korea is still the largest importer of American beef in the world. Nearly half of the beef that Korea imported last year was American. The US does not appear likely to make a great profit from the additional opening of the Korean beef market. Yet, it has pointed to Korea's restriction on US beef imports as a typical non-tariff trade barrier. Koreans' aversion to US beef appears to have dropped remarkably, but US beef from cattle aged 30 months or older is likely to revive fears of mad cow disease and memories of protests. US-grown LMO potatoes were assessed as safe by the Rural Development Administration in March. Justification for the import ban on LMO potatoes has weakened. Importing apples is expected to cause vehement opposition from farmers. Many farmers grow apples in Korea, taking up 23 percent of its fruit cultivation area. Considering this, the government has practically banned apple imports since 1993 on the grounds that harmful insects could be brought in from abroad. Even when apple prices soared due to a poor harvest, Korea moved to increase imports of alternative fruits such as bananas, pineapples and mangoes, but not apples. Importing apples has been considered taboo. Proposals for negotiations are not yet finalized, but some Korean farmer groups are condemning the government for trying to make agriculture a scapegoat again. It will not be easy to persuade farmers within the two weeks left till the July 31 deadline for tariff negotiations. Yet, it is not easy to reject all of the US demands, either. Should the 25 percent "reciprocal" tariff be imposed on Korean items exported to the US, the Korean economy will reel from shock. In a macro perspective of national interests, a flexible attitude for strategic decisions is needed. Selective or conditional acceptance is more realistic than blanket refusal.
Korea Herald
14-07-2025
- Business
- Korea Herald
With tariff clock ticking, Korea seeks ‘practical, win-win' deal with US
'Real game begins now,' says Seoul's trade minister, signaling tougher phase of talks with Washington ahead of Aug. 1 deadline SEJONG ― With under three weeks to go before the US activates its "reciprocal" tariffs on Aug. 1, South Korea is accelerating negotiations to prevent heavy duties on key export items, aiming for a "practical, win-win" agreement. Trade Minister Yeo Han-koo said Monday that while time is limited, "the real game begins now," noting that Korea "will not sacrifice substance for speed." 'With less than 20 days remaining, this is a period of decisions and strategic choices," Yeo told reporters in a briefing over his Washington trip last week. "We must now prepare a give-and-take process to identify a viable landing zone." Yeo traveled to Washington on July 5 for six days of tariff talks, during which he met with his counterpart, US Trade Representative Jamieson Greer, as well as other senior officials including US Commerce Secretary Howard Lutnick. There, he emphasized Korea's concerns over key tariff items and pushed for progress on a mutually beneficial framework focused on industrial cooperation. 'Negotiations can take a year or progress overnight. While time is short, we could adopt a principled framework like the US-UK deal, reaching consensus on major points while continuing detailed negotiations postdeadline," Yeo said. "Our focus is on maximizing national interest through pragmatism." The US is currently negotiating with more than 20 countries as part of its effort to overhaul its global trade network. With its focus on reducing the trade deficit, Washington is demanding that Korea increase investments and purchases in the US, as well as modify regulatory practices seen as barriers to US exports. Seoul is pushing for the removal or a significant reduction of what it calls unfair tariffs, including the 25 percent reciprocal tariffs as well as 25 percent on cars and 50 percent on steel. Building on the US' interest in revitalizing its manufacturing sector, Korea has proposed a "manufacturing renaissance partnership" aimed at strengthening industrial cooperation through corporate investment and procurement in the US alongside technological collaborations. Addressing the US' concerns over nontariff barriers, Yeo said, "some are reasonable while others are overly subjective, clearly framed from the US companies' perspectives." Yeo still hinted that Korea could make certain regulatory changes when they appear to align with Korean efforts to modernize its systems and strengthen competitiveness. Among the nontariff barriers the US points to are restrictions on beef and rice imports, and limits on the exporting of high-resolution map data ― a long-standing request from Google. "Agricultural issues have never been easy, whether we are negotiating with the US, Southeast Asia, or any other country. But through those challenges, Korea's industrial competitiveness has strengthened," Yeo said. "Agriculture is an area that requires strategic judgment." On the Alaska liquefied natural gas project, which the US is encouraging Korea to join, Yeo noted that more time is needed to reach a legally binding commitment, as the US is still preparing the basic commercial data required for assessment. Yeo said he will be coordinating with ministries and the National Assembly this week to finalize the domestic mandate, and he plans to travel to the US at least once more before the August deadline to seal the deal. "We will protect what we must, but also consider flexibility in areas less critical," he said. Given how the Trump administration is concurrently negotiating with over 20 countries as part of its broader push to restructure global trade networks, Yeo emphasized the importance of closely observing the progress of other talks. 'Even countries that appeared to be nearing a deal, like the EU, Mexico, Canada and Japan, have seen roller-coaster developments. No country can afford to let its guard down, even after the talks conclude."
Korea Herald
14-07-2025
- Business
- Korea Herald
Korean shipbuilding industry welcomes discussions for possible cooperation with US
South Korea's shipbuilding industry welcomed the government's ongoing discussions with the United States regarding potential cooperation in the sector, calling it a "new opportunity" for the sector, Seoul's industry ministry said Monday. The Ministry of Industry, Trade and Energy met with officials from major shipbuilders here, including HD Korea Shipbuilding & Offshore Engineering Co., and shipbuilding affiliates of Hanwha Group and Samsung Group, as well as equipment companies, in the southeastern port city of Busan to discuss measures to promote the sustainable development of the sector, according to ministry officials. In the meeting, the shipbuilders expressed anticipation for cooperation opportunities with the US, saying they hope for collaboration across various areas, such as maintenance, repair and operations, as well as supply chain development, to support the overall growth of the industry. Park Dong-il, the ministry's director general for manufacturing industry, who presided over the meeting, said, "The government plans to officially push for the establishment of the Korea-US shipbuilding partnership in the latter half of this year." The government will also work to devise measures to find new growth engines for the industry, beyond the area of liquefied natural gas carriers that led the recent growth, and bolster the competitiveness of the shipbuilding equipment manufacturers, he added. South Korea's Trade Minister Yeo Han-koo previously said he proposed advancing bilateral manufacturing cooperation to US President Donald Trump's administration as one of the ways to reduce Seoul's trade surplus with Washington during recent trade talks. The Trump administration showed particular interest in potential collaboration in the shipbuilding and semiconductor sectors, Yeo has said. The proposal was made as Seoul aims to conclude tariff negotiations with the US by Aug. 1 in a bid to get full exemption or reduction of the 25 percent reciprocal tariffs and sectoral duties on steel, automobile and other imports. (Yonhap)
Business Times
11-07-2025
- Business
- Business Times
South Korea's trade chief seeks ‘landing zone' in US trade talks
[SEOUL] South Korea's top trade official said negotiations with the US on tariffs have entered a critical phase, after wrapping up meetings in Washington and returning to Seoul late Thursday (Jul 10). Trade Minister Yeo Han-koo held talks with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, pressing for an extension of the suspension of the proposed 25 per cent across-the-board tariffs, now scheduled to take effect on Aug 1. South Korea is also seeking reductions in sectoral tariffs on industries such as autos and steel. 'We are focusing on swiftly reaching a landing zone,' Yeo told reporters in a televised briefing after arriving at Incheon airport on Thursday. 'There's now trust built to accelerate negotiations in the next three weeks, covering both tariff and non-tariff issues.' South Korea is pursuing what it calls a 'manufacturing renaissance partnership' to align with America's industrial policy, Yeo said. The US has shown strong interest in partnering with Korean firms to rebuild its manufacturing base in strategic sectors tied to national security, such as shipbuilding and semiconductors, he added. Talks with the US are slowly progressing after a months-long leadership vacuum in Seoul, following the impeachment of President Yoon Suk-yeol, which stalled much of the negotiations. Yeo said he's also watching how other countries such as Japan are navigating US tariff threats to fine-tune Korea's strategy. The discussions are unfolding as Washington pressures Seoul to pay more for hosting US troops, complicating the calculus for Korea's negotiating team. US Secretary of State Marco Rubio told South Korea's National Security Adviser Wi Sung-lac in a meeting on Monday that he hopes the two nations will continue to have close communications to reach an agreement before the August deadline, according to a readout from South Korea's presidential office. Among issues raised by the US are digital regulations in South Korea, including network usage fees imposed on foreign content providers and restrictions on exporting precise location data, which have long hindered firms such as Google. These digital trade concerns have become part of the broader negotiations, alongside pressure from the US to open up Korea's agricultural market, particularly in sensitive items such as beef and rice. Yeo also met with Senator Dan Sullivan during his trip to discuss the Alaskan liquefied natural gas project. Korea is eager to participate, he said, but needs greater commercial clarity from the US. He added that discussions will resume once the US makes further progress in its preparations. BLOOMBERG
The Star
07-07-2025
- Business
- The Star
Factbox-Big tech rules, agriculture among issues in US trade talks with South Korea
SEOUL (Reuters) -South Korea was one of the first countries to start U.S. trade talks when both sides agreed in April to craft a package aimed at removing tariffs, but it is now seeking an extension to the 90-day pause on 25% tariffs set to expire on July 9. Trade talks between South Korea and its second-biggest trading partner have so far focused mainly on non-tariff barriers, as the Asian country already imposes near-zero tariffs on U.S. imports under a free trade agreement, according to South Korean is a list of some of the issues that have arisen around negotiations: DIGITAL SERVICES South Korea's trade minister, Yeo Han-koo, has said the digital sector is one of the most important areas during the ongoing tariff negotiations. The government has a number of legislative proposals to regulate giant tech companies at home and abroad, which President Lee Jae Myung has pledged to enact to tackle abuses of market dominance and protect smaller companies. In a letter dated July 1, U.S. Congressman Adrian Smith and 42 colleagues wrote to U.S. trade negotiators that the legislation, which they said mirrors the European Union's "discriminatory Digital Markets Act," would disproportionately target American companies while exempting major Chinese digital giants such as ByteDance, Alibaba and Temu. South Korea's ruling party is seeking to "slow down" antitrust legislation on tech giants, including U.S.-based Google, Apple, Facebook and Korea's Naver and Kakao, in light of trade issues and its sensitivity, Democratic Party lawmaker Kim Nam-geun told Reuters on Monday. NETFLIX, GOOGLE MAPS South Korea's requirements on content providers, such as Netflix, to pay network usage fees and restrictions on the export of location-based data by Google and other suppliers were also mentioned in the U.S. foreign trade barriers report released in March. In 2016, South Korea rejected Google's request for permission to use detailed mapping data in servers outside the country, citing security issues with North Korea. Seoul is set to rule on Google's fresh request on location-based data on August 11. Apple has also reportedly made a similar request on maps. BEEF, APPLES Washington is demanding better access to the agriculture, auto and digital sectors during ongoing negotiations, South Korea's trade minister said. South Korea, the world's biggest buyer of U.S. beef, restricts imports derived from animals older than 30 months, citing concerns over mad cow disease. The U.S. also has long made market access requests for other agricultural items, such as potatoes and apples. There is, however, domestic concern about opening up the market further, after earlier negotiations where Seoul agreed to lower beef tariffs to 0% by 2026 in a bilateral free trade pact in 2007. The trade ministry will emphasise the sensitivity of the agricultural sector at the negotiations, director Chang Sung-gil said at a public hearing on June 30, where farmers' groups attended to protest. South Korea's tariff of more than 500% on rice imports, which was highlighted by U.S. President Donald Trump in a speech, has not been raised during working-level discussions, according to a senior South Korean official. DEFENCE COSTS, FOREIGN EXCHANGE The issues of foreign exchange policy and cost sharing for some 28,500 U.S. troops in South Korea are being discussed via separate finance and defence channels, officials have said. INVESTMENTS Trade officials have emphasised that industrial cooperation, particularly in the shipbuilding industry, will contribute to the revitalisation of the U.S. manufacturing sector and decrease U.S. trade deficits. Trade Minister Yeo said South Korea plays a leading role in artificial intelligence, chips, batteries, cars and semiconductors. ALASKA LNG PROJECT While South Korea is considering more energy purchases, officials have expressed caution when it comes to participation in an Alaska gas project. Although South Korea has shown interest in the $44 billion LNG project in Alaska, the trade minister said the feasibility of the project was still not clear and the U.S. would only provide technical information later in the year. (Reporting by Jihoon Lee and Hyunjoo Jin; Editing by Ed Davies and Saad Sayeed)
