'Commercial rationality' clause unique among US trade partners

North Korea-US dialogue resumption seen as key to enabling inter-Korean talks

[Yonhap]
[Yonhap]

President Lee Jae Myung said Friday that South Korea is engaged in intense negotiations with the United States to structure investment projects in ways that serve the national interests of both countries.

Speaking at a press conference at Cheong Wa Dae, Lee said that while the investment negotiations had been described as nearly settled, he found certain elements difficult to accept after reviewing the details. "There are parts I cannot easily agree to," he said. "We are going back to the table."

On the tariff negotiations, Lee said the process had been "very difficult and grueling," but that South Korea had succeeded in inserting the phrase "commercial rationality" into the agreement — a term he said no other country had managed to secure. "It was an enormously difficult achievement," he said.

He said that as specific investment discussions got underway, new complications had emerged. "We will only pursue projects that have commercial rationality," Lee said. "National interest is truly important."

Lee said he believed South Korea must not be swayed by "improvised pressure or coercion" during the process, then smiled and added, "I am not saying the United States is doing that."

Asked about reports that Washington is pressuring South Korean companies to build semiconductor factories in the United States, Lee said the outcome would be "a reasonable conclusion that protects South Korea's national interest while respecting the views of the companies." He acknowledged the issue remains "still a matter of contention."

Lee also moved to dismiss concerns that South Korea could be sidelined as North Korea-US dialogue progresses. "There is no need to worry about being 'passed over,'" he said flatly.

"In the early stages of dialogue, we may be somewhat on the periphery," Lee said, "but the South Korean government has a role to play in advancing North Korea-US relations, and our government's role in North Korea-US cooperation cannot be absent."

He added that resuming dialogue between North Korea and the United States was "far easier" than restarting inter-Korean talks, and that such dialogue would in turn make inter-Korean engagement possible.

Lee said he could not say with certainty whether a meeting between US President Donald Trump and North Korean leader Kim Jong-un would materialize, but noted that Trump wants dialogue. "I am continuing to play a coordinating role behind the scenes to make North Korea-US talks possible," he said.

"It is still difficult, that is true," Lee said, "but I cannot say it is impossible. We must make every effort to turn possibility into reality."

Lee also addressed the question of deploying troops to the Strait of Hormuz, making clear that South Korea would not send forces in any capacity that involved participation or intervention in a war. He added, however, that a minimal level of activity to protect South Korean merchant vessels, oil supply routes, and the lives and safety of its citizens would be necessary.


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