Korean Minister of Trade, Industry and Energy, Kim Jong-kwan, expressed confidence that passing the special law for investment in the U.S. would likely lead to a deferral of tariff increases imposed by the U.S.
On September 9, Kim Jong-kwan, the Minister of Trade, Industry, and Energy of South Korea, indicated that the potential approval of a special investment law aimed at enhancing U.S. investments could significantly defer proposed tariff increases from the U.S. He emphasized the government’s efforts to resolve tariff concerns and revealed that a prolonged delay in legislation has been a core grievance from the American side. The timely passage of this special law is seen as crucial in alleviating tensions surrounding tariff policies and fulfilling bipartisan demands in the Korean National Assembly.
Kim held discussions with U.S. Commerce Secretary Howard Rutnik, suggesting gradual progress in negotiations, which he interpreted as a positive signal that tariff rate increases might not be officially published. He noted that the uncertainty around the tariff hikes stemmed from President Trump’s statements made via social media platforms, particularly regarding the stalled special law legislation. Minister Kim remarked that the completion of this legislative process could pave the way for subsequent joint investment projects with the U.S., which are currently under discussion but cannot proceed until the special law is enacted.
Lastly, Minister Kim addressed perceptions linking ongoing issues, such as those stemming from companies like Coupang, to tariff increases, clarifying that the matters should be treated separately. He asserted that solving present issues involves tackling them in distinct ways, rather than compounding them with other unrelated concerns. The Minister's ongoing efforts to communicate effectively with U.S. counterparts are vital as the government navigates these complex trade relations, aiming for a stable investment climate between the two countries.
