A TV screen on July 31 at a waiting room of Seoul Station shows news on the bilateral tariff agreement with the U.S. on the day the accord was concluded. (Yonhap News)

By Charles Audouin

Bilateral tariff negotiations with the U.S. have been concluded.

Korea agreed to create a USD 350 billion fund to invest in the U.S. in return for a lower tariff rate of 15%, allowing the country to compete on the American market with Japan and the European Union.

Presidential Chief of Staff for Policy Kim Yong-beom on July 31 told an emergency briefing at the Office of the President, "The reciprocal tariff that the U.S. said it would impose from Aug. 21 will be lowered from 25% to 15%," adding, "The tariff on cars, Korea's leading export item, has also been reduced to 15%."

"Tariffs on items such as semiconductors and pharmaceuticals to be announced later will also be treated no less favorably than those of other countries," he added. "(The U.S. said) Korea will receive most favored nation status."

The secretary also ruled out further openings of the Korean rice and beef markets.

On the USD 350 billion fund for investment, he said, "The Korea-U.S. shipbuilding cooperation fund of USD 150 billion will span the entire shipbuilding ecosystem including construction, MRO (maintenance, repair and operation), and equipment."

The details of a bilateral summit coming in two weeks as mentioned by U.S. President Donald Trump will be discussed immediately through diplomatic channels.

President Lee Jae Myung on his Facebook account announced the agreement results, saying, "By eliminating uncertainty in the export environment and making U.S. tariffs lower or the same as those of leading competitors that export to the U.S., we created conditions to compete on equal or better terms."

"The USD 350 billion fund included in the trade agreement will firm up the basis for bilateral strategic industrial cooperation and play a role in helping Korean companies actively enter the U.S. market in sectors Korea is strong in such as shipbuilding, semiconductors, secondary batteries, bio and energy."

He added, "Of this, USD 150 billion will be used as a fund exclusively for bilateral shipbuilding cooperation to strongly support Korean corporate entry in the related sector in the U.S."

caudouin@korea.kr