Seoul rallies corporate titans in all-out bid to dodge steep US tariffs

South Korea is mounting a last-ditch effort to finalize a tariff agreement with the US ahead of the Aug. 1 deadline, with direct backing from the country’s top business leaders amid escalating pressure from Washington to offer deeper concessions.

Hyundai Motor Group Chairman Chung Euisun is set to depart for Washington on Wednesday afternoon to bolster Seoul’s negotiations with Washington in a trade deal, according to a senior South Korean government official.   

Chung will follow the footsteps of Samsung Electronics Co. Chairman Lee Jae-yong and Hanwha Group Vice Chairman Kim Dong-kwan, who are already in the US and are expected to offer additional investments in the US in the semiconductor and shipping sectors, respectively.

With Chung, the head of the world’s third-largest auto group, joining the lobbying effort, Seoul is hoping to inject new momentum into the negotiations just days before the upcoming Friday deadline set by the US to impose sweeping 25% tariffs on its trading partners.

In March, Chung met with US President Donald Trump and pledged a $21 billion investment in the US, including an output ramp-up at Hyundai’s car plant in the US state of Georgia and construction of a new steel mill in Louisiana.

US MOUNTS PRESSURE

His latest US trip follows foreign media reports that US Commerce Secretary Howard Lutnick urged South Korean officials to “bring it all” in their final offer to President Trump, during a recent meeting in Scotland, also attended by US Trade Representative Jamieson Greer.  

South Korea’s Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo traveled to Scotland last week to hammer out the final details of a bilateral trade accord with US officials accompanying President Trump on his Scotland visit.

With Washington having already secured tariff agreements with Japan and the European Union, US negotiators are escalating demands on South Korea to match or exceed previous deals.

Amid growing uncertainty over South Korea’s tariff talks, President Trump has hinted that the US-South Korea tariff talks have stalled somewhat.

"(Negotiations) won't be finished tomorrow, but our country is becoming very rich, and that's what we want," Trump told reporters on Tuesday (local time), according to a White House pool report.

The comment came in response to a reporter's question about whether the tariff talks with Seoul would conclude on Wednesday.

DO-OR-DIE

Facing the prospect of heavy duties, South Korea is pulling out all the stops to strike a deal comparable to those secured by Japan and the EU, which both reduced their baseline tariffs to 15% in exchange for substantial US investment pledges.

Before heading to Scotland, South Korea’s Minister Kim and Minister Yeo met with Secretary Lutnick in Washington, D.C., and New York last Thursday and Friday, respectively.

The two Korean officials also joined Deputy Prime Minister and Finance Minister Koo Yoon-cheol’s meeting with Lutnick in the US on Tuesday (local time).  

Koo is also scheduled to meet with US Treasury Secretary Scott Bessent on Thursday, while Korea’s Minister of Foreign Affairs, Cho Hyun, will have a separate meeting with his counterpart, Secretary of State Marco Rubio, the same day.

“We will explain our proposals and our country’s position (during consecutive meetings with US officials) and have a constructive discussion about mid- to long-term cooperation between South Korea and the US in sectors such as shipbuilding,” Koo told reporters on Tuesday before departing for the US.

Asked about Seoul’s target tariff rate, he said the delegation would work to secure an agreement aligned with South Korea’s national interest.  

To sweeten the deal, Asia’s fourth-largest economy has indicated its willingness to offer politically sensitive trade concessions.

The Korean government is considering opening its market to additional US agricultural imports, including rice and beef, a move likely to trigger resistance from domestic farming groups.  

Seoul is also reportedly considering a US investment package worth over $100 billion, which would involve both state-backed funds and private-sector commitments.

The Asian trading partner has proposed to Washington an investment project, dubbed “Make American Shipbuilding Great Again,” or MASGA, an effort designed to revitalize the US shipbuilding sector.  

Additional pledges are expected in the semiconductor sector, as both countries seek to bolster strategic cooperation amid the ongoing AI-driven tech race.

Write to Sookyung Seo at skseo@hankyung.com
  
Jennifer Nicholson-Breen edited this article.