Seoul Resists Pressure to Seal U.S. Trade Deal Amid Concerns for Korean Companies

President Lee Jae Myung speaks during a Cabinet meeting held at the presidential office in Seoul on July 22, 2025. (Image courtesy of Yonhap)

SEOUL, Sept. 16 (Korea Bizwire) — South Korea’s presidential office said Tuesday it will not be rushed into signing a trade agreement with Washington, cautioning that a deal struck hastily could undermine the interests of Korean companies at a delicate moment in negotiations.

Talks have been ongoing since late July, when the two governments reached a preliminary understanding to cut U.S. tariffs on Korean products from 25 percent to 15 percent. But a formal agreement has yet to materialize, as negotiators remain divided over the details of Seoul’s pledged $350 billion investment package in the United States.

“(The government) cannot sign an agreement that would cause major losses to our companies just because of time pressure,” a senior presidential aide told reporters, speaking on condition of anonymity. The official stressed that while Seoul aims to conclude talks “at an early date,” it will not accept terms that “cause serious harm” to Korea’s national interest.

On September 12, at the arrival hall of Terminal 2 at Incheon International Airport, where South Korean workers detained in Georgia by U.S. immigration authorities returned home, Lee Je-seok, head of the Lee Je-seok Advertising Research Institute and widely known as a genius ad planner in Korea, staged a placard performance featuring the image of U.S. President Donald Trump. A recent poll shows that many South Koreans feel not only bewildered but increasingly angry over the incident. (Yonhap)

President Lee Jae Myung has made clear that Korean businesses should not be coerced into loss-bearing ventures in the U.S. market. “Companies invest in the U.S. to make money, not to give it away,” the aide said, underscoring Lee’s position.

Negotiations are now centered on thorny issues such as the structure of Seoul’s investment pledge, funding mechanisms and profit-sharing arrangements. The recent reduction of U.S. tariffs on Japanese automobiles — from 27.5 percent to 15 percent — has added urgency, leaving Korean automakers exposed at the higher 25 percent rate unless a deal is reached.

For Lee, the challenge is to balance the strategic imperative of deepening ties with Washington against the domestic imperative of protecting Korean companies. The administration has emphasized that any agreement must reflect not only geopolitical considerations but also tangible economic benefits for Korean firms.

M. H. Lee (mhlee@koreabizwire.com)