Seoul, July 31 South Korean President Lee Jae Myung urged the government on Thursday to closely monitor public concerns over the trade deal with the United States (US) and prepare follow-up measures to protect the nation's core interests.
Lee made the call after Seoul clinched a trade deal with Washington to lower the reciprocal and auto-specific tariffs from the initial 25 per cent to 15 per cent in exchange for the $350 billion investment pledge and $100 billion US energy purchases, Yonhap News Agency reported.
"It is expected to further bolster South Korea-US economic cooperation and the alliance," Lee said during a meeting with senior aides and secretaries.
"Although we have overcome a big mountain, the reorganisation of the global trade order is expected to accelerate."
With the deal concluded, Lee urged the government to address structural challenges facing the domestic economy by implementing measures to boost consumption and diversify export markets.
"I want relevant ministries to closely monitor public concerns and thoroughly prepare follow-up measures to safeguard our core national interests," he said.
South Korea avoided additional US market access demands in such sensitive sectors as beef and rice, Seoul officials said, but the new tariffs, set to take effect on Friday, have raised concerns over the export-reliant economy amid sagging domestic demand.
Earlier in the day, the two nations announced a bilateral trade agreement that sets a 15 per cent tariff on South Korean exports to the US against the initially expected 25 per cent, and includes a pledge for $350 billion in South Korean investment in the US shipbuilding, energy and other sectors.
The deal also applied the 15 per cent tariffs on automobiles, down from the current 25 per cent, while South Korea avoided additional US market access demands in such sensitive sectors as beef and rice. The new arrangement is set to take effect Friday (US time).
"We have overcome a significant hurdle," President Lee Jae Myung said in his Facebook post. "The agreement eliminates uncertainty in our export environment and creates conditions to compete on equal or better terms with major countries."
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