Washington, Oct 16 South Korea and the United States are making progress in their trade negotiations, Seoul's trade minister said, as they are striving to hash out details over the implementation of Seoul's $350 billion investment commitment under a bilateral trade deal struck in July.
Trade Minister Yeo Han-koo made the remarks upon arrival at an airport near Washington, as Yeo, Presidential Chief of Staff for Policy Kim Yong-bum, Finance Minister Koo Yun-cheol and Industry Minister Kim Jung-kwan are set to engage in a blitz in Washington this week to expedite the negotiations with the US, reports Yonhap news agency.
"Progress is being made," Yeo told reporters at Ronald Reagan Washington National Airport. "A mood has been formed, encouraging (relevant top Seoul officials to visit Washington and) do their utmost."
Yeo stressed the importance of yielding a result that "best serves national interests," as he commented on U.S. Treasury Secretary Scott Bessent's remarks earlier in the day that he expects an outcome from the negotiations to come within "the next 10 days."
"We are focusing on the content and substance rather than thinking about an artificial deadline," the minister said.
He voiced hope that a potential summit between Korean President Lee Jae Myung and U.S. President Donald Trump on the occasion of the Asia-Pacific Economic Cooperation summit, set to begin in Korea late this month, can serve as a "good" opportunity, as the two countries seek to finalise the trade deal.
"We are making efforts to capitalise on that opportunity," he said.
The two countries reached a framework trade deal in late July, under which Seoul has committed to investing $350 billion in the U.S., among other pledges, in return for Washington's agreement to lower its "reciprocal" tariff and sector-specific duty on South Korean autos both to 15 percent from 25 percent.
But the deal has yet to go into force amid negotiations to bridge differences over a set of sticking points, including how to fund the investment package.
"We have kept persuading the U.S. about the difference between South Korea and Japan, and about the burden (of a massive direct cash investment) on the foreign exchange (market)," Yeo said. "As the U.S. understands this now, we are now at a stage to explore a constructive alternative."
The U.S. has demanded Korea's direct equity investment to implement its investment commitment, but Korea has balked at the demand, arguing that it could lead to a crisis akin to the 1997 Asian financial meltdown.
Seoul has envisioned its investment mostly in the form of credit guarantees and loans, with its direct equity investment accounting for around 5 percent of the total. It also requested that the U.S. enable Korea to be involved in deciding where to invest for its investment package based on "commercial rationality."
Earlier in the day, Bessent voiced confidence that Seoul and Washington can resolve differences over the implementation of the investment package. In particular, he told a CNBC forum that the U.S. is "about to finish up" negotiations with Korea.
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