February 28, 2025
SEOUL – South Korean Industry Minister Ahn Duk-geun vowed to engage in “constructive” discussions with US officials and devise “win-win” trade strategies as he left for Washington on Wednesday.
Ahn was heading to the US for the first ministerial-level meeting between Seoul and Washington since President Donald Trump’s return to the White House on Jan. 20.
“I believe we will be able to resolve various misunderstandings regarding trade and tariffs through constructive discussions and come up with win-win measures, just as we did with the US Inflation Reduction Act,” Ahn told reporters upon arriving at Dallas Fort Worth International Airport.
Referring to trade restrictions beyond tariffs, such as quotas and complex import procedures, Ahn added, “Korea has a Free Trade Agreement with the US, and we have already clarified our stance on non-tariff barriers.” Trump has argued that these barriers limit US exports and reduce profitability
During his three-day trip, Ahn is expected to meet with ranking US officials, including Commerce Secretary Howard Lutnick and Energy Secretary Chris Wright, as well as members of Congress, according to the Ministry of Trade, Industry and Energy.
With the US recording its eighth-largest trade deficit with Korea, the Trump administration is likely to pressure Seoul to reduce the trade imbalance. In response, Korea is considering increasing imports of US crude oil and natural gas as a potential bargaining tool.
“Energy imports are a key negotiating factor for us, and we will explore detailed measures in discussions with the US government,” Ahn said.
“Other countries in similar positions are also reviewing plans to increase energy imports from the US. We are considering this option, as diversifying energy sources is mutually beneficial for energy security.”
During his meetings, Ahn is expected to address the Trump administration’s proposed tariffs, including a 25 percent tariff on steel, aluminum and automobiles.
According to industry officials in Korea, Ahn will request Washington to exclude Seoul from these tariff measures and instead strengthen bilateral cooperation in the shipbuilding and energy sectors.
“Before this trip, I met with Korean companies, including Hyundai Motor Group, to review their business strategies and investment plans in the US. I have assessed key concerns that should be addressed in trade negotiations with US officials,” Ahn said.
Prior to his trip, Ahn met with Hyundai Motor President Sung Kim, a former US ambassador to Korea, in a closed-door meeting to discuss Trump’s proposed automotive tariffs and Hyundai Motor Group’s mid-to-long-term investment plans in the US.
Regarding reports that the US Commerce Secretary urged Korean firms to invest at least $1 billion during a meeting with a Korean business delegation last week, Ahn clarified that Lutnick’s remarks were an explanation of the “America First Investment Policy,” which offers regulatory incentives for foreign investors.
“Given the significance of trade relations between Korea and the US, every issue is critical,” Ahn stated. “We are engaging in comprehensive discussions on various aspects of industrial cooperation and will continue negotiations to safeguard Korean companies from US tariff measures.”
Following his Washington trip, Ahn is expected to meet with GM Korea, which faces serious risks if Trump’s proposed 25 percent auto tariff is enacted. The meeting, originally scheduled for December last year, was postponed due to the martial law crisis.