South Korea’s top presidential policy adviser on Thursday expressed optimism over ongoing talks to finalise a long-pending trade deal with the United States, marking the latest indication of progress after months of stalled negotiations.
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.
Announcement In Next 10 Days
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% from 25%, in return for South Korean investment of $350 billion in US strategic industrial sectors.
Stalled Negotiations
A promised cut in US tariffs on auto imports to 15% from 25%, 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 $550 billion investments in the US.
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% to a record high on Thursday, as shares of Hyundai Motor surged 9.6% to a one-year high and sister automaker Kia jumped 8%.
(With inputs from Reuters)
