On the morning of the 30th, the Ministry of Trade, Industry and Energy held a public hearing on 'U.S.-Korea tariff measures discussion' at the Post Tower Conference Room in Jung-gu, Seoul. This is the first public event hosted by the Korean government since U.S. President Donald Trump announced a policy to impose tariffs worldwide on April 2nd.
The hearing was filled with businesspeople, lawyers, journalists, and spectators. Representatives from industries affected by tariff imposition, including steel and automotive, as well as participants from the agricultural and energy sectors at the negotiation table, attended in large numbers and voiced their opinions.
According to the ministry, the government is currently demanding the elimination of basic tariffs (10%), reciprocal tariffs (15%), and industry-specific tariffs (25% for automobiles and 50% for steel and aluminum) from the U.S. A framework for negotiations was established through discussions between financial and trade authorities of Korea and the U.S. on April 24th, and three technical consultations have been held so far. Last week, Yeo Han-koo, the chief trade negotiator, visited the U.S. and met with U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer.
The public hearing was held as part of the official procedure that includes ▲ reviewing economic feasibility ▲ hosting a public hearing ▲ establishing treaty negotiation plans ▲ reporting to the National Assembly ▲ and starting negotiations, in accordance with trade treaty law. The Korea Institute for International Economic Policy (KIEP) announced the results of the economic feasibility review of the Korea-U.S. trade negotiations at this event.
Kim Yeong-gwi, senior researcher at KIEP's Trade Agreement Team, said, "If Korea and the U.S. fail to reach a trade agreement, our country's real Gross Domestic Product (GDP) will fall by 0.3% to 0.4% compared to existing levels." He added, "If only Korea reaches an agreement, it will be higher than the failed scenarios by 0.427 percentage points to 0.751 percentage points, surpassing the existing real GDP," while noting that "this scenario may have been overestimated based on the assumption that only tariff measures will be eased for Korea."
In response, questions from reporters included, "Why did you adopt a scenario with low feasibility?" and "What assumptions were used for the analysis?" However, the researcher stated, "I cannot disclose specific criteria or content."
On that day, industry representatives expressed their concerns and questioned the direction of the government's negotiations, along with sharing their individual cases of damage.
Seo Jin-kyu, president of GS&J Institute, said, "The agricultural sector is already incurring losses, and according to Trump's logic, we should impose more tariffs on U.S. products," adding that "the demand for opening agricultural and livestock products is an unreasonable claim." A representative from the Korean Ginseng Association also stated, "Agriculture has suffered damages during every free trade agreement (FTA) negotiation," and argued, "There should be separate tariffs set for agricultural products."
In response, Director General Jang Seong-gil said, "We emphasize at every negotiation that the U.S. has been running a surplus in agricultural and livestock products and services every year," adding that, "We will approach the negotiations considering the sensitivity and specificity of our agriculture."
The automotive, steel, and energy industries also expressed concerns. A representative from the Korea Automobile Manufacturers Association asked, "The decrease in automobile exports to the U.S. is significant; not only finished vehicles but also 20,000 parts manufacturers are concerned. What are the government's negotiation goals and plans for strengthening the automotive industry ecosystem?" The Steel Association inquired about the status of steel-related negotiations with the U.S. and other major countries, while the energy sector raised questions regarding the Alaska LNG project.
Director General Jang provided only a general response regarding Alaska LNG imports and measures to address the automotive industry's damages, stating, "We are assessing the economic viability of Alaska LNG and monitoring trends in the U.S., and we are in close communication with relevant departments regarding the automotive sector." Regarding negotiations with other countries, he mentioned, "We are gathering as much information as possible when negotiating with the U.S.," but he added that "specific answers are difficult."
At the public hearing, voices were raised criticizing the lack of transparency in the government's information disclosure. Shin Mi-yeon, from The Progressive Party, noted, "The Korea-U.S. trade negotiations are directly related to the people's livelihood economy," insisting that "the government must transparently disclose the specific contents of the negotiations requested by the U.S." In particular, she added, "The levels of discussion regarding non-tariff areas such as network fees, exports of Google precision maps, and public cloud issues should be clarified."
In response, Director General Jang acknowledged, "We recognize the necessity of disclosing key details to increase the transparency of the negotiation process," but he also stated, "It is difficult to disclose specific contents to protect national interests."
Meanwhile, experts advised that the focus in the U.S.-Korea negotiations should not just be on simple tariff reductions but rather on substantial outcomes. Yang Joo-young, director of the Economic Security and Trade Strategy Research Office at the Korea Institute for Industrial Economics & Trade (KIET), emphasized, "The U.S. market is not just a simple export destination; it is a testing ground for high-value industries and the starting point for global technology standards," noting that it is also at the center of the value chain of strategic industries such as semiconductors, AI, batteries, and defense industries. He added, "Beyond short-term tariff exemptions, there is a need for joint supply chain construction, energy and core mineral collaboration, and customized negotiation strategies for each industry."