South Korea’s Vice Prime Minister and Finance Minister Koo Yun Cheol said he will ask parliament for help to gain political support for a key investment law aimed at investment heading to the United States after President Donald Trump announced plans to raise tariffs on a range of South Korean goods to 25%.
“He will ask the parliament for help to pass the law quickly,” said Koo Yun Cheol, adding, “He will negotiate with the US on the process of passing a parliamentary law in Korea for US-linked investments.
The proposed tariff hike, which would raise tariffs from 15 percent to 25 percent on products including cars, lumber and pharmaceuticals, prompted Seoul to urgently consult with Washington, DC, while urging its lawmakers to speed up approval of measures linked to US-bound investment.
Seoul is pushing parliament for quick approval
South Korea’s finance ministry said it would ask parliament for help to ensure swift passage of legislation related to outbound investment in the United States.
At the same time, the officials confirmed that Seoul intends to negotiate directly with Washington on the domestic approval process. According to the finance ministry, it will hold talks with its US counterparts to explain how South Korea’s parliamentary procedures affect the timing and implementation of the investment law.
The move reflects growing concerns in Seoul that a delay in domestic ratification could be interpreted in Washington DC as a failure to honor commitments made under a trade and security pact that was finalized late last year.
No advance notice from Washington DC, South Korea says
South Korea’s presidential office said it was not informed in advance of Trump’s proposed tariff hike and is seeking an explanation from the United States.
“At this time, there is no official announcement from the US government or any explanation of the details,” the presidential office in Seoul said.
The statement added that Trade Minister Kim Jung-kwan, who is currently attending meetings in Canada, will travel to Washington DC at the earliest opportunity to address the issue directly.
“Trade Minister Kim Jung-kwan, who is currently in Canada, also plans to visit the United States as soon as possible to consult with Trade Minister (Howard) Lutnick on this matter,” the statement added.
Trump mentions legislative delay for tariffs on South Korea
President Donald Trump announced the tariff hike on Monday and accused South Korean lawmakers of failing to enact elements of what he described as a “historic trade deal” between the two countries.
“The South Korean legislature is not fulfilling its agreement with the United States,” Trump wrote on the Truth Social platform.
The US president added that the tariff decision was a response to the inaction of the parliament in Seoul.
“Because the Korean legislature did not enact our historic trade agreement, which is their prerogative.
If implemented, the move would effectively undo one of the key achievements of an earlier deal that cut US tariffs on South Korean cars from 25 percent to 15 percent in exchange for investment commitments from Seoul.
High stakes for South Korea’s auto sector
The potential reversal has raised alarm in South Korea’s export economy, particularly in the auto industry. Vehicles and related products account for roughly 27 percent of South Korea’s exports to the United States, which absorbs nearly half of the country’s total auto exports.
A return to higher levels of tariffs would also put South Korean manufacturers at a competitive disadvantage compared to Japan and the European Union, which have both secured trade deals with Washington that limit tariffs to 15 percent.
