Minister Kim Jung-kwan: "Steel Tariffs Affect Shipbuilding Costs... Room for Negotiation Remains"

Kim Jung-kwan, Minister of Trade, Industry and Energy, expressed optimism that the current 50% tariffs imposed by the United States of America (USA) on steel and aluminium could be improved through future negotiations.
On the 23rd, appearing on KBS Sunday Diagnosis Live, Minister Kim stated, "The USA maintains a 50% tariff on steel for all, including Japan and Europe, so they claim they cannot make an exception for Korea. However, I believe there is still room for negotiation." He added, "In the shipbuilding industry, steel is heavily used, so a 50% tariff would further increase shipbuilding costs. There are practical matters to discuss and explain."
Addressing concerns that the USA might use Korean investment funds for high-risk, low-return projects instead of lucrative ventures with guaranteed returns, Minister Kim explained, "Such concerns have existed from the beginning, and there were even claims that our investment funds would be used for midterm elections. To ensure the selection of investments where principal and interest can be recovered, we included 'commercial rationality' as a criterion. Decisions are made through discussions in the consultative and investment committees, so we will operate the system to dispel worries about high-risk, low-return investments."
Recently, some political circles have called for the ratification of the Memorandum of Understanding on Strategic Investment between the Republic of Korea and the United States (MOU), but Minister Kim made his opposition clear.
He warned, "Ratification by the National Assembly of the Republic of Korea would give the MOU the status of a treaty, granting it legal effect domestically. If it becomes law, it must be observed, but some provisions of the MOU should be revised from a national interest perspective. If it becomes law as is, situations may arise where the law is violated."
Meanwhile, Minister Kim emphasized that self-help efforts are absolutely necessary for Korea's main export industries, such as petrochemicals and steel. Using the petrochemical sector as an example, he noted, "We have established grounds for fiscal, financial, and regulatory relief through the enactment of special laws. Next week, I plan to visit Yeosu to meet with companies." However, he also remarked, "Over the past decade, companies have taken all the profits but, in difficult times, have not contributed a single penny of their own money while seeking government support. This does not align with public sentiment."

aber@fnnews.com Park Ji-young Reporter