South Korea and the United States are expected to sit at the trade negotiation table next week. It has been confirmed that the preliminary 'first video conference on Alaskan liquefied natural gas (LNG)' was held on the morning of the 15th. The South Korea-U.S. sides exchanged the overview of the Alaskan LNG project and their interests during the video conference. The Alaskan LNG project is considered a key card for reducing reciprocal tariffs on South Korean imports from the U.S.
Scott Vessen, the U.S. Treasury Minister leading the trade negotiations of the Trump administration, noted in an interview with Bloomberg TV on the 14th (local time), "There will be negotiations with South Korea next week," adding, "We will proceed with the negotiations quickly." Minister Vessen stated, "Usually, the person who first concludes the negotiations will achieve the best deal," and added, "I will see what they bring and start the negotiations from there."
◇ Entering into main negotiations... the ministerial meeting will likely follow the trade talks
The South Korean government is also ramping up its negotiation preparations. On the 15th, the government convened an 'economic security ministerial meeting' chaired by Vice Prime Minister Choi Sang-mok, Minister of Economy and Finance, to review trade negotiation cards. The economic security ministerial meeting was newly established to strengthen cooperation between the economic and security ministries.
It is reported that during the meeting, a departmental role-sharing system was discussed for preparing the trade negotiations with the U.S., focusing on the interests confirmed through a phone call between the South Korean and U.S. leaders and Jeong In-kyu, the head of the Trade Negotiation Headquarters of the Ministry of Trade, Industry and Energy.
The chief representative for the South Korean side in the trade negotiations is Minister Ahn Duk-geun of the Ministry of Trade, Industry and Energy. Acting Prime Minister Han Duck-soo stated during an economic security strategy task force meeting held the previous day at the Prime Minister's residence in Samcheong-dong, Seoul, "We will form a negotiation team centered around the Minister of Industry and push forward the consultations as soon as possible."
The Ministry of Industry is preparing a schedule for Minister Ahn to visit the U.S. next week, as the U.S. side has officially announced the 'holding of U.S.-South Korea trade negotiations next week.' However, they have not finalized the visit schedule due to the lack of a designated chief representative for the U.S. negotiations. A ministry official explained, "We are coordinating Minister Ahn Duk-geun's visit to the U.S."
Within the government, there is speculation that while Minister Ahn will lead the negotiations, both Vice Prime Minister Choi Sang-mok and Acting Prime Minister Han Duck-soo may participate in negotiations if necessary. Vice Prime Minister Choi is likely to meet Minister Vessen separately at the G20 Finance Ministers and Central Bank Governors Meeting in Washington next week.
A Ministry of Economy and Finance official stated, "We are coordinating the schedule for the U.S.-South Korea Finance Ministers' meeting." Prime Minister Han also noted at the economic security strategy task force meeting that, "If necessary, I will strive to create solutions through direct communication with President Trump."
◇ Attempting a package deal with 'Alaskan LNG and shipbuilding cooperation'
The 'package deal' card that our side presents is also drawing attention. Our side is considering trade balance, shipbuilding cooperation, and the Alaskan LNG project as three negotiation cards that Acting Prime Minister Han and President Trump agreed upon during their first phone call on the 9th.
The government views 'Alaskan LNG cooperation', which the Trump administration considers a key project, as a primary card. The Alaskan LNG project, promoted by the Trump administration, aims to transport natural gas produced at the far northern tip of Alaska to the southern coast of Alaska via a 1,300-kilometer gas pipeline and then ship it on LNG carriers to Korea, Japan, and other Asian demand countries. The project's cost is estimated at approximately $44 billion (64 trillion won). The U.S. government intends to secure the necessary funding through foreign investment attraction.
The government is currently reviewing the possibility of purchasing LNG from Alaska to significantly reduce the trade surplus with the U.S., rather than directly participating in the project. It is reported that the South Korean and U.S. sides exchanged interests through a working-level video conference held on the morning of the 15th. The Korea Gas Corporation participated in the working-level video conference on our side.
There is also speculation that the issue of 'burden sharing for defense costs', agreed upon by South Korea and the U.S. during the previous Biden administration, may come to the negotiation table. However, the government is cautious, believing that if the burden-sharing issue comes to negotiations, it will complicate the existing trade negotiation equation and could prolong the negotiations.
The government is also paying attention to the Trump administration's movements regarding tariffs on semiconductors and pharmaceuticals. Earlier, the U.S. Department of Commerce's Bureau of Industry and Security announced on the 14th (local time) that it had begun an investigation under Section 232 of the Trade Expansion Act to assess the impact of imports of semiconductors, semiconductor manufacturing equipment, and derivatives on national security.
This investigation has a strong character as a preliminary procedure to impose tariffs on semiconductors and pharmaceuticals. The positions of our corporations and government that will be conveyed during this investigation are also of interest. In relation, Vice Prime Minister Choi noted, "I will communicate closely with the industry and present our views to the U.S. regarding the initiation of the Section 232 investigation on semiconductors and pharmaceuticals."