The South Korean Ministry of Foreign Affairs communicated that while the U.S. has not changed its stance on investment laws, there is an understanding of the need for special legislation in Korea, unlike Japan.
On December 12, the South Korean Ministry of Foreign Affairs held a briefing regarding the progress of the special law for foreign investment, indicating that despite ongoing discussions, there has been no fundamental change in the U.S. position. However, they interpreted the absence of the re-imposition of tariffs in the U.S. Federal Register as a sign that the U.S. understands Korea's efforts to persuade them. It was noted that U.S. Secretary of State Marco Rubio had expressed concerns about the negative atmosphere regarding U.S.-Korea relations during a recent meeting, emphasizing that substantial progress on Korea's investment implementation is essential from the U.S. perspective.
Another official from the Foreign Ministry highlighted that predicting when the tariff re-imposition will be published is difficult, but the delay indicates some level of U.S. understanding of the South Korean government's explanations and efforts. The official stated that a special committee in the National Assembly is aiming for the swift passage of the special law by late February to early March, while the government is also working to establish a temporary system to review investment projects ahead of legislative completion, ensuring effective communication with the U.S. to prevent further deterioration of relations. Additionally, South Korea's Trade Negotiation Head is set to continue discussions with the U.S. Trade Representative to find mutually satisfactory results regarding non-tariff barriers.
In response to concerns about Coupang's lobbying activities putting pressure on the South Korean government, an official indicated that results from a recent official investigation would be communicated to the U.S. Embassy to prevent unnecessary issues from arising in bilateral relations. Finally, regarding U.S. pressures citing Japan's progress in investments, the Foreign Ministry explained that while Japan can proceed without new domestic laws, South Korea has consistently communicated to the U.S. that domestic legislation is essential. This understanding dates back to the initial agreements made between the two countries.
