Finance Minister Koo Yun-cheol speaks during a parliamentary session on Aug. 6, 2025. (Image courtesy of Yonhap)
SEOUL, Aug. 6 (Korea Bizwire) — South Korea’s finance chief said Wednesday that the country’s Free Trade Agreement (FTA) with the United States remains effective, despite a recent tariff agreement between the two countries.
Finance Minister Koo Yun-cheol made the remarks during a parliamentary session, following last week’s last-minute deal between Seoul and Washington. Under the agreement, the U.S. will impose a 15 percent tariff on South Korean imports, down from the initially proposed 25 percent, in exchange for South Korea’s investment of US$350 billion in the U.S.
Following the deal, concerns have emerged that the zero-tariff benefits of the South Korea-U.S. FTA could be diminished.
“With a few exceptions, South Korea continues to benefit from the FTA,” Koo said, noting that countries without an FTA with the U.S. are subject to higher tariffs than South Korea. The minister said the 15 percent tariff will be applied to the previous zero percent.
Regarding Seoul’s $150 billion commitment to the U.S. shipbuilding industry, Koo said the investment is expected to boost exports and create job opportunities.
“In particular, small and mid-sized companies could find new opportunities through investment in shipbuilding equipment and parts,” he added.
Responding to comments that domestics companies investing in the U.S. should be exempt from tariffs on related equipment and facilities, Koo said the government plans to make such a request during upcoming negotiations.
He also dismissed the opposition bloc’s criticism that the agreement was humiliating, stressing that South Korea avoided the “worst-case scenario” of a higher tariff burden.
Addressing concerns over agricultural market access, the minister emphasized that the government has not made additional concessions in the latest negotiations.
“There has been no further market opening for U.S. agricultural products, such as fruits and vegetables, through tariff negotiations,” he said.
The government earlier said it has successfully safeguarded the interests of the domestic agricultural and livestock sectors through the negotiations.
(Yonhap)
