US-South Korea trade talks postponed over Bessent schedule as tariff deadline looms

SEOUL - Talks between top South Korean and US officials to negotiate over US President Donald Trump’s tariffs have been postponed due to a scheduling conflict for US Treasury Secretary Scott Bessent, South Korea’s Finance Ministry said on July 24.

The two sides will reschedule the meeting between Mr Bessent and South Korean Finance Minister Koo Yun-cheol, as well as the top trade envoys of both countries, as soon as possible, the ministry said.

Mr Koo was set to board a flight for Washington on July 24 to attend the meeting on July 25, in the hope of hammering out a deal that would spare Asia’s fourth-largest economy from

Mr Trump’s punishing 25 per cent tariffs set to take effect on Aug 1.

The sudden announcement by the finance ministry an hour before Mr Koo’s departure cast fresh doubts about whether Seoul would be able to pull off an agreement to avert US import duties that could hit some of its major exporting industries.

“It might be difficult to reschedule 2+2 again before August 1st, so the best we can do is for the trade chief Yeo to request an extension of the tariff exemption,” said Prof Yoon Heo, international trade professor at Sogang University, referring to Minister for Trade Yeo Han-koo.

The benchmark KOSPI stock index trimmed early gains to close up 0.2 per cent, as auto and auto parts makers fell on news of the postponed talks, with Hyundai Motor dropping 2 per cent.

Washington gave no further details on the postponement of July 25’s meeting, the finance ministry said, though US officials are embroiled in a flurry of different negotiations on trade, including with China and the European Union.

Top South Korean officials flew to Washington this week amid a push to reach a deal by Aug 1.

Mr Wi Sung-lac, South Korea’s top security adviser, said he spoke to senior US officials on a range of topics from security to the economy.

In a statement, Mr Wi denied a media report that US Secretary of State Marco Rubio refused to meet him, saying they had spoken by telephone after Mr Rubio was called away to speak to Mr Trump.

“Negotiations on pending issues between South Korea and the US are in a critical final phase,” Mr Wi told reporters at the airport after returning to South Korea on July 24.

Trade minister Yeo and Industry Minister Kim Jung-kwan, who are also in Washington, have held meetings with US officials as scheduled, the South Korean government said.

Mr Yeo will also meet US Trade Representative Jamieson Greer, the industry ministry said.

Pressure to match Japan deal

Pressure on South Korea heightened this week after

Japan clinched a deal with the US,

which Mr Trump said would see Tokyo allowing greater market access for American products, including cars and some agricultural products.

The agreement includes a commitment by Japan for a US$550 billion (S$702 billion) package of US-bound investment and loans.

The two major Asian security allies of the US compete in areas such as autos and steel, and Japan’s deal was seen by investors as a benchmark for the type of agreement Seoul should target in negotiations, analysts have said.

The involvement of a range of ministerial-level officials in talks with US officials in recent days suggested the countries were working on a trade package that could involve a range of sectors, including South Korea’s sensitive farm markets.

South Korean officials have said access to US markets is key to industrial cooperation between the allies that would help rebuild American manufacturing industries, including shipbuilding.

Seoul is set to propose to Washington an investment package plan worth at least US$100 billion, which would involve major South Korean conglomerates like Samsung and Hyundai Motor Group, Yonhap News Agency reported.

President Lee Jae Myung met Hyundai Motor Group Executive Chair Euisun Chung and LG Group Chairman Koo Kwang-mo this month and discussed their US investments, Mr Lee’s office said.

Mr Lee also planned to meet Samsung Electronics’ chairman on July 24, the Dong-A newspaper reported.

Finance ministry officials in Seoul declined to comment on media reports about a potential investment fund. REUTERS