Kim Jung-kwan (second from right), South Korea's minister of trade, industry and energy, poses for a photo with US Commerce Secretary Howard Lutnick (third from right) and signatories at a ceremony marking the signing of an MOU on the Korea-US Shipbuilding Partnership Initiative, held at the US Department of Commerce in Washington, D.C., on May 8 (local time). [Ministry of Trade, Industry and Energy]
Kim Jung-kwan (second from right), South Korea's minister of trade, industry and energy, poses for a photo with US Commerce Secretary Howard Lutnick (third from right) and signatories at a ceremony marking the signing of an MOU on the Korea-US Shipbuilding Partnership Initiative, held at the US Department of Commerce in Washington, D.C., on May 8 (local time). [Ministry of Trade, Industry and Energy]

South Korea's Minister of Trade, Industry and Energy Kim Jung-kwan is heading to Washington for final-stage talks aimed at fleshing out a $200 billion strategic investment package for the United States. With new American tariff measures on the horizon, Kim is set to meet US Commerce Secretary Howard Lutnick and other senior officials to work through the details of the investment projects and pressing bilateral trade issues.

Kim also said he intends to clear up what he described as misunderstandings over the Coupang Inc discrimination controversy, which the US government has raised as a concern.

Speaking to reporters Wednesday before departing for the United States, Kim said he expected the Coupang issue to come up naturally during his meetings with US government officials.

"The government has its own solid reasoning and grounds on this matter, and we plan to convey our position fully to the US side whenever similar controversies arise," he said, adding that he did not believe the Korea-US alliance would be shaken by an issue of this scale.

On recent pressure for South Korean companies to build semiconductor fabrication plants in the United States, Kim said the matter was ultimately a question of each company's strategic investment judgment and that no concrete discussions had taken place yet.

Kim will visit Washington, D.C., from Wednesday through Saturday (local time) to hold consultations with senior figures in the US administration and Congress on bilateral trade and investment issues, the Ministry of Trade, Industry and Energy said.

Kim is scheduled to meet with Commerce Secretary Lutnick to discuss the specific timeline and cooperation framework for the strategic investment projects.

The government launched a Korea-US Strategic Investment Project Management Committee last month and has been identifying candidate projects for domestic companies to join. Kim Yong-beom, the presidential office's policy chief, recently said the first investment project is expected to take shape between August and September.

The talks are expected to mark the first concrete step toward implementing the $200 billion investment package agreed upon at last year's Korea-US summit. Kim will discuss follow-up schedules and cooperation plans with Lutnick.

Kim will also meet US Energy Secretary Chris Wright and other administration officials to explore ways to deepen bilateral cooperation in natural resources and energy. An energy-related project is widely considered the leading candidate to be designated the first investment project under the initiative.

On Thursday, Kim will attend the opening ceremony of the Korea-US Shipbuilding Cooperation Center in Washington, D.C., alongside senior US officials and shipbuilding companies from both countries. The center's launch follows the MOU on the Korea-US Shipbuilding Partnership Initiative signed between the two countries' trade and commerce ministries on May 8, and both sides plan to use the center to support cooperation between Korean and American shipbuilders and identify areas of joint achievement.

"The government is moving ahead in earnest with strategic investment projects in the United States under the Korea-US Strategic Investment Special Act, which took effect June 18," Kim said. "Through this visit, we will further define the direction of those projects and do our utmost to ensure the tariff agreement between Korea and the United States is implemented without a hitch, so that the bilateral trade relationship remains stable."

Yeo Han-koo, the ministry's chief trade negotiator, departed for the United States on Monday and is holding talks with US Trade Representative Jamieson Greer and other officials through Friday on the new tariff measures.

The visit takes on added significance given that the United States has signaled it will impose new tariffs. Washington is pursuing additional tariffs under Section 301 of the Trade Act, a provision that authorizes retaliatory duties against unfair trade practices. To that end, the USTR has been investigating countries around the world since March on two grounds — overcapacity and forced labor.

South Korea is included in both investigations. The United States has signaled additional tariffs of 10 to 12.5 percent on goods linked to forced labor, and there is talk that the effective tariff rate could exceed 20 percent if overcapacity-related duties are added on top.

Seoul is focused on preserving the 15 percent reciprocal tariff ceiling set under the Korea-US trade agreement. USTR chief Greer publicly stated early last month that Washington would honor the tariff cap under the trade deal. But whether that commitment will hold remains uncertain, as the final rate ultimately depends on President Donald Trump's wishes. One possibility is that a rate above 20 percent could be applied first, with conditional reductions offered afterward.


oskymoon@heraldcorp.com