U.S. sent South Korea a letter two weeks ago urging a trade agreement

Source
Korea Economic Daily

Summary

  • The United States said it delivered a letter urging implementation of the trade-related commitments in the Korea-U.S. joint fact sheet.
  • It said President Trump mentioned the possibility of raising tariffs on South Korean-made automobiles and other products, taking issue with delays in implementing the trade agreement.
  • The industry ministry said the letter concerns digital regulation issues and is not directly related to implementing the investment memorandum of understanding (MOU).

Acting U.S. ambassador in Seoul sent it to deputy prime minister for science and ICT

Industry minister, among others, copied

Industry ministry: "digital regulation issue"

Photo=Shutterstock
Photo=Shutterstock

The United States is said to have delivered a letter to the South Korean government about two weeks ago urging follow-up measures to implement trade-related commitments in the Korea-U.S. joint fact sheet signed in November last year.

It is being interpreted as a prior warning ahead of U.S. President Donald Trump’s remarks on the 26th (local time) that South Korea’s National Assembly had not carried out the legal procedures needed to implement the Korea-U.S. trade agreement, and that he would raise tariffs on South Korean-made automobiles and other products.

According to relevant ministries on the 27th, James Heller, acting U.S. ambassador to South Korea, sent a letter on the 13th to Bae Kyung-hoon, deputy prime minister and minister of science and ICT, urging implementation of the “Korea-U.S. Joint Fact Sheet” (joint explanatory material).

Recipients copied included Minister of Trade, Industry and Energy Kim Jung-kwan, Foreign Minister Cho Hyun, and Fair Trade Commission Chair Joo Byung-ki. An official at the industry ministry said, “We have confirmed that the U.S. letter was delivered to the deputy prime minister for science and ICT, and the industry ministry also received it as a reference,” adding, “We cannot disclose the specific contents of the letter or other communications exchanged diplomatically between the two governments.”

The ministry added that it understands the letter’s main subject to be Korea’s digital-related issues, and that it is not directly related to the implementation of an investment memorandum of understanding (MOU).

The fact sheet at the time stated that “Korea and the United States pledge to ensure that U.S. companies are not discriminated against or face unnecessary barriers in laws and policies related to digital services, including network usage fees and online platform regulation.”

The Trump administration has viewed Korea’s digital regulations—such as network usage fees and the Cloud Security Assurance Program (CSAP)—as unfavorable to U.S. big tech. As discussions over regulation broadened following amendments to the Information and Communications Network Act and the Coupang personal data leak incident, the U.S. side has repeatedly raised concerns that the measures amount to excessive regulation of its companies.

Analysts largely say that the issues differ between the delayed ratification of the special law on investment in the United States, which Trump cited as justification for a “tariff increase,” and the “easing of digital trade regulations” referenced in the letter delivered two weeks ago. A government official said, “If President Trump were using digital regulation as the rationale for today’s threat, he would have posted related content on social media.”

According to the presidential office, Industry Minister Kim Jung-kwan, who had been visiting Canada, plans to travel to the United States immediately to discuss the matter with Commerce Secretary Lutnick. Yeo Han-koo, head of the Trade Negotiations Bureau, is also expected to visit the U.S. soon to consult with U.S. Trade Representative (USTR) Greer. However, the schedule is also said to be highly likely to be adjusted, taking into account weather conditions in Washington.

Reporter Kim Dae-hoon daepun@hankyung.com

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Korea Economic Daily

hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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