US urges South Korea to speed up investment projects; Seoul says 'discussing through various channels'

The United States is intensifying pressure on South Korea to accelerate investment projects within the U.S., signaling a potential link to the impending announcement of results from the U.S. Trade Act Section 301 investigation. This move is interpreted as an attempt to leverage the 15% tariff rate agreed upon in the South Korea-U.S. trade agreement as a bargaining chip.

Sources indicate that both nations have been engaged in intense discussions regarding the U.S. investment projects. The U.S. Department of Commerce has reportedly expressed repeated dissatisfaction with the delays in implementing these projects, which were outlined in the Joint Fact Sheet agreed upon by the leaders of both countries last October. The U.S. has implied that the promise of a final 15% tariff rate may not be upheld if the investment commitments are not met.

The U.S. has already imposed a 12.5% tariff on South Korea based on Section 301, citing forced labor, and is currently investigating the imposition of additional tariffs for "overproduction." In contrast, the South Korean government maintains a cautious stance, emphasizing the need for thorough evaluation of the "commercial rationality" to ensure stable, long-term returns on investment.