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Officials aim to finalize Korea-U.S. tariff agreement ahead of APEC meeting

Published: 22 Oct. 2025, 10:55

National policy director Kim Yong-beom, right, and Industry Minister Kim Jung-kwan walk through the departure gate at Incheon International Airport’s Terminal 2 on Oct. 22 before departing for Washington for additional talks on Korea-U.S. tariff negotiations. [NEWS1]

Kim Yong-beom, presidential director of national policy, and Kim Jung-kwan, minister of trade, industry and energy, are set to depart for the United States on Wednesday morning to conduct follow-up talks on tariffs and investment following recent Korea-U.S. negotiations.

The presidential office and the Ministry of Trade, Industry and Energy announced their departure late Tuesday in an emergency briefing. Both officials had returned to Korea just days earlier — Kim Yong-beom on Sunday and Kim Jung-kwan on Monday — after leading negotiations with U.S. Commerce Secretary Howard Lutnick in Washington on Thursday.

Their return to the United States is seen as a last-minute push to finalize an agreement ahead of the Korea-U.S. summit scheduled during the upcoming APEC Economic Leaders' Meeting in Gyeongju.

The flurry of activity has raised speculation that a breakthrough may be near in the high-stakes tariff negotiations between the two allies. Speaking after his return last week, Kim Yong-beom said there had been “substantial progress on most issues” and noted that the prospects for a final deal during the APEC Economic Leaders’ Meeting had “significantly improved.”

During last week’s talks, Korean negotiators reportedly conveyed that the upfront cash investment model demanded by U.S. President Donald Trump — centered on equity-based contributions — was not feasible given Korea’s foreign exchange reserves. Washington is said to have shown some flexibility on the matter, though differences over key details remained unresolved.

National policy director Kim Yong-beom, left, and Industry Minister Kim Jung-kwan speak to the press at Incheon International Airport’s Terminal 2 on Oct. 22 before departing for Washington for additional talks on Korea-U.S. tariff negotiations. [YONHAP]

Government sources say the current trip is intended to finalize the draft agreement, with the goal of issuing a joint statement during the summit. “Director Kim and Minister Kim are expected to hold final talks with Secretary Lutnick,” said a high-ranking ruling party official. “The aim is to resolve the remaining issues.”

Key points of contention include the ratio of cash investment to guarantees and loans, as well as who will oversee project selection. Optimism remains that these gaps can be bridged in the latest round of discussions.

In a recent report, global investment bank Morgan Stanley said the chances of a memorandum of understanding being signed around the APEC Economic Leaders’ Meeting had increased. The bank described a likely scenario in which the two countries maintain the basic framework of 15 percent tariff cuts on automobiles in exchange for $350 billion in U.S.-bound investment, but lower the cash investment requirement and establish a foreign currency swap line with the U.S. Federal Reserve.

Legal experts have urged clarity in any final document. “If the outcome is left vague, as was the case with the July 30 and Aug. 25 agreements, it could create confusion,” said Lee Jae-min, a professor at Seoul National University School of Law. “This time, the terms must be clearly defined and formalized.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM WON, YOON JI-WON [[email protected]]