South Korea and US Pledge to Reach Trade Deal by August 1

South Korean trade officials met with US counterparts in Washington, pledging to reach a trade deal by Aug. 1. Industry Minister Kim Jung-kwan and Commerce Secretary Howard Lutnick discussed trade and bilateral manufacturing cooperation. Trade Minister Yeo Han-koo also held a video call with Alabama Governor Kay Ivey about Korean companies' US investments.

South Korean trade officials met with their U.S. counterparts in Washington, pledging to reach a trade deal by Aug. 1. Industry Minister Kim Jung-kwan and Commerce Secretary Howard Lutnick discussed trade and bilateral manufacturing cooperation. Trade Minister Yeo Han-koo also held a video call with Alabama Governor Kay Ivey about Korean companies' U.S. investments [1].

The meeting came after the cancellation of planned talks with Treasury Secretary Scott Bessent due to a scheduling conflict on Bessent's end. Both sides intend to reschedule [2]. Kim Jung-kwan emphasized the need to ensure South Korean companies are not put at a disadvantage compared to competitors from other countries. He also proposed cooperation in strategic manufacturing industries such as shipbuilding, semiconductors, and batteries [1].

Kim Jung-kwan and Lutnick agreed to reach a "mutually beneficial" trade deal before the Aug. 1 deadline, when reciprocal tariffs by the Donald Trump administration are set to come into force. They also agreed to hold an additional round of negotiations at the earliest possible date [1].

Yeo Han-koo, in his video call with Alabama Governor Kay Ivey, discussed Korean companies' U.S. investments. The southern state is home to a number of plants by Korean companies, including Hyundai Motor, which in March announced plans to invest about $21 billion in the U.S. over the next four years [2].

The 2+2 meeting, involving South Korea's Finance Minister Koo Yun-cheol and Trade Minister Yeo Han-koo, along with their U.S. counterparts, Bessent and U.S. Trade Representative Jamieson Greer, was originally scheduled to take place on Friday but has been postponed due to Bessent's scheduling conflict [3].

The South Korean Kospi ended Thursday’s session up 0.13%, while the SPDR S&P 500 ETF (SPY) has gained 8.9% this year, and the iShares MSCI South Korea ETF (EWY) has surged up over 45% [3].

References:
[1] https://www.koreaherald.com/article/10539529
[2] https://www.marketscreener.com/news/south-korea-seeks-to-reach-u-s-trade-deal-by-aug-1-ce7c5fdadc8af62c
[3] https://stocktwits.com/news-articles/markets/equity/bessent-to-skip-south-korea-trade-talks-due-to-scheduling-conflict/ch8yVwCR5uF