Acting President Han's call with Trump could point the way for Korea-U.S. trade talks

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Acting President Han's call with Trump could point the way for Korea-U.S. trade talks

Published: 09 Apr. 2025, 19:19 Updated: 09 Apr. 2025, 20:20

Audio report: written by reporters, read by AI

Acting President and Prime Minister Han Duck-soo speaks during a phone call with U.S. President Donald Trump on April 8. [NEWS1]

Acting President and Prime Minister Han Duck-soo’s 28-minute phone call with U.S. President Donald Trump Tuesday night may mark a pivotal moment in setting the framework for Korea’s trade negotiations with the United States.

In a meeting with fellow Republicans following the call with Han, Trump referred to the concept of “one-stop shopping,” which Korean trade officials interpret as a U.S. desire for Seoul to offer a package deal — including tariffs, defense spending and investment in the United States — to resolve the trade surplus with Washington. The United States also seemingly wants Korea to focus on investing in the shipbuilding industry and Alaska liquefied natural gas (LNG).

The Tuesday night call is significant because key U.S. policy decisions are often shaped directly by Trump, according to trade officials. Until now, Korean negotiators, including Minister of Trade, Industry and Energy Ahn Duk-geun and Trade Minister Cheong In-kyo, have struggled to identify the core demands of the U.S. side.

“The Korean government has been preparing for negotiations from multiple angles, and with the support of summit-level diplomacy through this call, working-level talks aimed at lowering tariffs are expected to gain momentum,” said Park Sung-hoon, a professor emeritus at Korea University’s Graduate School of International Studies.

The timing of the call was coordinated to coincide with the Korean negotiation team’s trip to the United States.

“Their top team is on a plane to the United States, and things are looking good,” Trump remarked after the call in a post on his official Truth Social account.

Upon arrival, Cheong is scheduled to meet with his U.S. counterpart, Jamieson Greer of the U.S. Trade Representative (USTR), to accelerate the negotiations.

U.S. President Donald Trump signs an executive order at the White House in Washington on April 8. [AFP/YONHAP]

“The Alaska LNG project is an important issue, and shipbuilding — where Korea is already strongly competitive — is another area of high interest to the U.S. side,” Cheong told reporters at Dulles International Airport in Washington on Wednesday. “These sectors will be on the table.”

The Korean government’s stance is expected to shift, particularly regarding investment in the Alaska LNG project.

Unlike Taiwan, which has already signed letters of intent (LOIs) with the United States for LNG purchases and investment, Korea has remained hesitant. However, the massive scale of the project, estimated at $39 to 44 billion, and the absence of a sitting president in Korea have complicated decision-making.

Recent comments by U.S. Treasury Secretary Scott Bessent, who said the Alaska development "could serve as an alternative in the Korea-U.S. and Japan-U.S. tariff talks,” have elevated the issue to a central position in negotiations, prompting an accelerated review on the Korean side.

Trade Minister Cheong In-kyo arrives at Dulles International Airport in Washington on April 9. [YONHAP]

Nonetheless, assembling a package deal will require careful coordination across government ministries. To fend off U.S. demands, such as increased defense cost-sharing, Seoul may need to offer concessions in the form of expanded market access or removal of nontariff barriers — tasks complicated by divergent interests among government agencies.

“To execute a package deal, the chief negotiator must be given broad authority that spans across ministries,” said Heo Yoon, a professor at Sogang University’s Graduate School of International Studies. “But aligning ministries could prove difficult in the current climate of a snap presidential election.”

During a parliamentary session on Wednesday, Industry Minister Ahn confirmed that he plans to visit the United States soon.

“Once the trade minister returns from Washington, we will assess the content of the negotiations and conduct a cross-ministerial analysis,” he said.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY KIM WON [[email protected]]