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Korea–U.S. Tariff Talks Stall as Industry Minister Returns Without Deal

Washington demands a Japan-style, U.S.-controlled $350 billion investment in exchange for tariff relief, prompting economic and political concerns in Seoul.

Overview

  • Industry Minister Kim Jung-kwan met U.S. Commerce Secretary Howard Lutnick in New York before returning Sunday with no announced progress.
  • U.S. tariffs on Korean goods are at 15% under the July framework, and Lutnick warned they could revert to 25% unless Seoul accepts the terms, citing Japan’s recent agreement as precedent.
  • The sticking point is an investment structure that grants Washington control over project selection and profit distribution, which Korean officials describe as a "blank check."
  • Seoul says the $350 billion demand equals about 84% of its foreign reserves and is pushing alternatives such as loans, guarantees, phased funding, and targeted projects.
  • A large immigration raid at a Georgia battery plant that detained over 300 Korean workers has heightened visa and investor-confidence concerns during the talks.