South Korea's Trade Minister Yeo Han-koo met with US Trade Representative Jamieson Greer in Washington on Tuesday, an informed source said, as Seoul and Washington have been in negotiations to hash out specifics of a bilateral trade deal struck in late July.
Their meeting was the latest round of negotiations between the two countries, after Korea's Industry Minister Kim Jong-kwan held talks with US Commerce Secretary Howard Lutnick in New York last week.
On July 30, the two sides reached a framework deal under which US President Donald Trump's administration agreed to lower "reciprocal" tariffs on Korea and sectoral tariffs on Korean autos to 15 percent from 25 percent in return for Korea's commitment to investing $350 billion in the United States and other pledges.
South Korean President Lee Jae Myung and Trump affirmed the deal during their White House summit on Aug. 25, but the two sides have yet to settle their differences over how to fund Korea's $350 billion investment package and how to share profits from it.
Seoul officials have said that the investment package will come largely in the form of loans and loan guarantees, while the Trump administration reportedly wants Korea to make direct equity investments, and hopes to take 90 percent of the profits after Korea recoups $350 billion.
On Tuesday (Seoul time), a senior official at Seoul's presidential office said that South Korea would not rush to sign a trade deal with the US if it would undermine the interests of Korean companies.
The reduction of US tariffs on Japanese autos to 15 percent from 27.5 percent, starting Tuesday, has further raised pressure on Korean negotiators, as it would put Korean auto exports at a disadvantage in the US market.
The US has agreed to lower tariffs on South Korean autos to 15 percent as well, as part of the bilateral trade deal, but it remains uncertain when the deal will go into force amid negotiations over specifics.
During his stay in the US capital, Yeo also met other US figures as part of Seoul's efforts to secure backing for its position in the trade negotiations. (Yonhap)
