United States-South Korea negotiations aim for trade agreement, proposing a deal that includes a partnership in shipbuilding industries.
South Korean Finance Minister Koo Yun-cheol is set to join Industry Minister Kim Jung-kwan and Minister for Trade Yeo Han-koo in Washington for talks with US officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. The meetings, scheduled for Thursday, aim to finalise an all-out response trade deal that will allow South Korea and the United States to co-exist.
The comprehensive trade agreement, reached as of late July 2025, sees South Korea imposing a 15% tariff on its imports of U.S. goods, a reduction from the initially threatened 25%. In return, South Korea has pledged to invest a substantial amount—$350 billion—in U.S.-owned and controlled investments selected by President Trump. Additionally, South Korea agreed to purchase $100 billion worth of liquefied natural gas (LNG) or other energy products from the U.S. This deal reflects South Korea's commitment to being "completely open" to trade with the U.S. and to accepting U.S. automobiles without tariffs.
However, the current status of trade negotiations between South Korea and the United States does not explicitly highlight South Korea's shipbuilding industry or outline specific investment plans related to it. The information emphasises tariffs, broad investment commitments, and energy purchases but lacks details on particular industries like shipbuilding.
Koo Yun-cheol plans to propose a trade deal program that South Korea has prepared, which may include a focus on areas of mid-to-long-term cooperation, including shipbuilding. The Hanwha Group, a South Korean conglomerate, has submitted a major investment plan to government officials, potentially involving expanding Philly Shipyard in Pennsylvania.
Foreign Minister Cho Hyun will visit Washington this week for a meeting with US Secretary of State Marco Rubio, while Vice Chairman Kim Dong-kwan of the Hanwha Group is in Washington to support trade negotiations. Lutnick stated that South Korean officials had flown to Scotland to meet with him, possibly indicating discussions about the shipbuilding industry.
The postponement of Treasury Secretary Bessent's meeting with Koo Yun-cheol last week due to a scheduling conflict suggests that negotiations are ongoing and complex. Despite the lack of public confirmation, Seoul officials are making an all-out push to clinch a trade deal before the August 1 deadline.
[1] Trade Deal Signed Between South Korea and the United States [2] South Korea to Invest $350 Billion in U.S. Projects [3] South Korea Agrees to Buy $100 Billion in U.S. LNG
[1] This trade deal, which was signed between South Korea and the United States as of late July 2025, includes various aspects beyond just tariffs and energy purchases. Notably, South Korea plans to focus on mid-to-long-term cooperation in certain business sectors, particularly the shipbuilding industry.
[2] As part of the $350 billion investment commitment made by South Korea, there are potential plans to expand Philly Shipyard in Pennsylvania, a move that could significantly impact the U.S. business and finance sectors.
[3] In addition to this broad investment, South Korea has agreed to purchase $100 billion worth of liquefied natural gas (LNG) or other energy products from the U.S., but the deal also presents opportunities for investment in the shipbuilding industry, a key area of interest for both nations.
