[SEOUL] South Korea’s chief presidential policy adviser said on Thursday he was “optimistic” about ongoing talks to finalise a trade deal with the US, in the latest remarks by officials suggesting progress in negotiations that had stalled for months.
Kim Yong Beom and Industry Minister Kim Jung Kwan spoke to reporters before departing for the United States. They will be joining Finance Minister Koo Yun Cheol and Minister for Trade Yeo Han Koo for follow-up negotiations in Washington.
Kim’s comments echo Minister Koo’s remarks earlier this week that there was “huge progress” and Foreign Minister Cho Hyun saying there were “positive signals” in reaching a deal.
On the US side, Treasury Secretary Scott Bessent said on Wednesday the countries were close to finalising a trade deal and he expected an announcement in the next 10 days. Seoul has been seeking to reach a deal by late October when US President Donald Trump is due to visit the country for an Asia-Pacific summit.
South Korea agreed in late July a preliminary deal with Trump lowering US tariffs on imports to 15 per cent from 25 per cent, in return for South Korean investment of US$350 billion in US strategic industrial sectors.
A promised cut in US tariffs on auto imports to 15 per cent from 25 per cent, however, has not been implemented for South Korea amid stalled negotiations over the details of the investment package, while rival Japan secured this last month after finalising its deal including US$550 billion investments in the US.
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Seoul has been concerned over the foreign exchange implications and the structure of the investment package and asked Washington for a safeguard, such as a currency swap line, to prevent any currency market impact.
South Korea’s benchmark Kospi stock index rose as much as 1.9 per cent to a record high on Thursday, as shares of Hyundai Motor surged 9.6 per cent to a one-year high and sister automaker Kia jumped 8 per cent. REUTERS
