Korea's new trade team to center 'national interest' in U.S. trade talks

Korea's new trade team, led by Trade Minister Yeo Han-koo, aims for balanced negotiations with the United States amid escalating tariff threats from U.S. President Donald Trump.

Trade Minister Yeo Han-koo speaks during the launch ceremony of a task force for U.S. trade talks at the Sejong government complerx on June 16. [YONHAP]

The Lee Jae-myung administration has assembled a new trade negotiation team that emphasizes national interest and a give-and-take approach amid escalating tariff threats from the Donald Trump administration ahead of the July 9 deadline.

The launch of the team, headed by Trade Minister Yeo Han-koo, came after the United States threatened to send an ultimatum within two weeks — a proposal that Trump says Korea would have to either accept or reject.

In the past, the lead negotiator was Ahn Duk-geun, minister of trade, industry and energy, supported by former Trade Minister Cheong In-kyo. But given the current administration has yet to appoint a new industry minister, Yeo will likely take the lead for the time being.

The new team aims to “produce pragmatic, national interest–driven outcomes that encompass tariffs, nontariff barriers and industrial and energy cooperation with the United States,” according to a statement by the ministry on Monday. In line with the objectives, Yeo has hinted at taking a tougher stance with the United States.

“There is no such thing as a negotiation where only one side gives,” Yeo said. “We shouldn’t approach the talks in a too defensive manner, but rather aim for a give-and-take negotiation,” he told reporters on June 12 after his inauguration ceremony.

Before taking the post in January, Yeo had noted the importance of leveraging Korea’s strengths — technology, supply chain roles and geopolitical importance — as bargaining chips. “There is a very promising future for Korea-U.S. cooperation in sectors such as shipbuilding, defense, biotech and civilian nuclear power,” he said at a roundtable. “Both [former U.S. President Joe] Biden and Trump have focused on on-shoring manufacturing and supply chain, and I believe the structural complementarity between Korea and the U.S. is substantial.”

Trump has ratcheted up his threat to accept new trade terms or face higher duties. Speaking during an event at the John F. Kennedy Center for the Performing Arts in Washington, Trump said his administration would send letters to the trading partners including Korea outlining “the deal,” stating, “You can take it or leave it,” according to Bloomberg.

The fact that the Lee administration switched all of its working-level negotiators means that the Korean government’s stance could undergo a change under the new government.

Some experts predicted that Lee would retain the same working-level officials given their previous face-to-face meetings and follow-up discussions.

President Lee Jae-myung, right, and first lady Kim Hye-kyung greet onlookers at Seoul Air Base in Seongnam, Gyeonggi, before boarding the presidential jet bound for Canada on June 16. [YONHAP]

He appointed Park Jung-sung to become a lead working-level official for the trade talks. Park oversees four divisions: negotiation support, industrial cooperation, energy cooperation and trade and investment.

“Given the serious hardships U.S. tariff measures are posing for businesses and citizens, I urge everyone to carry out their responsibilities with a strong sense of duty and mission.” Yeo said during the launch event on Monday, “We will mobilize all efforts across government agencies and the public and private sectors to ensure a successful outcome through the negotiations and our proposal.”

Observers expect that the appointment of the industry minister could come after the final approval for other key posts that Lee already appointed.

Lee is currently on a trip to attend a Group of 7 meeting, where trade negotiations could take place.

To listen to the voices across the board, the ministry will hold a hearing on June 30 to discuss progress and hear suggestions from associations, industries and consumers.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]