U.S. trade negotiations displaying firmness, yet South Korea pursuing equilibrium in industries: minister's stance
South Korea's Minister of Industry, Kim Jung-kwan, is leading negotiations with the United States Citizenship and Immigration Services (USCIS) over a significant investment deal. The broad outlines of the deal were announced on July 30, with Seoul pledging to invest $350 billion in the US in exchange for lower tariffs. However, differences remain over how to structure Korea's pledged investment and how returns will be shared.
Minister Kim has been a key figure in these discussions, pushing for a win-win deal that benefits both countries. He acknowledges that the negotiations have been tough but stresses their importance for shaping Korea's future.
Kim, a former CEO of Doosan Enerbility, has been vocal about the government's energy plans. He recently called for the construction of two large nuclear reactors and one small modular reactor under the 11th Basic Power Plan.
The minister met with US Commerce Secretary Howard Lutnick on September 12 to discuss the pact. During this meeting, he raised the issue of the US immigration raid at the Hyundai Motor and LG Energy Solution's joint battery plant in Georgia, where 317 Korean workers were detained.
Kim also emphasized the need for a balanced energy mix, including nuclear, renewables, and climate policy. He contrasted Japan's nonbinding memorandum with the US to Seoul's tariff negotiation, suggesting that the former is aimed at securing favorable terms for the auto industry.
However, speculation exists about redirecting the investment into subsidies for domestic companies to offset tariff losses. While Kim did not address this directly, he did mention that the investment package includes $150 billion for the 'Make American Shipbuilding Great Again' initiative, which will benefit Korean firms building facilities in the US.
The negotiations are in a push-and-pull process, with both sides exchanging terms they see as unreasonable or unfair. Washington under the Trump administration is taking a harder approach than in the past during these negotiations.
Despite these hurdles, Kim affirmed Seoul's commitment to both advancing tariff talks with Washington and ensuring Korea's energy competitiveness. He also expressed regret over the transfer of the Industry Ministry's energy division to the new Ministry of Climate, Energy and Environment, stating that industry and energy should move organically together.
Lutnick reportedly expressed regret over the incident at the battery plant and promised to 'fix' it. Kim, in turn, emphasized the need for a balanced approach in all aspects of the negotiations.
In his role as an independent minister in the Cabinet of Lee Jae-myung, as of July 18, 2025, Kim Jung-kwan continues to navigate these complex issues with determination and a focus on a fair and balanced outcome for both South Korea and the US.
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