Disparities, lack of details blight Korea's not-so-done trade deal with U.S.

This article is by Lee Jae-lim and read by an artificial voice.

A couple of sticking points loom following Washington's decision to cap Korea's tariffs at 15 percent: The details of $450 billion investment package that would trickle into the U.S. economy and disparities between the two countries on agricultural trade as well as lingering uncertainties on digital regulations and tariffs on pharmaceuticals and semiconductors.
Korea's trade delegation was lauded by the government for drastically lowering the U.S. tariff rate from 25 to 15 percent. The negotiation process was far from smooth, according to Deputy Prime Minister and Finance Minister Koo Yun-cheol.
"It felt like a war," Koo said to the press upon arriving at Incheon International Airport on Friday. "They say the devil is in the details, but I believe the angel is too... We plan to use the newly established agreement as a basis to create concrete strategies and actively respond during detailed negotiations with the United States."
Kim Jung-kwan, minister of trade, industry and energy, evaluated the outcome as having "averted the worst-case scenario."
The dialogue was described as intense, with Kim adding, "While speaking with U.S. Commerce Secretary Howard Lutnick, whenever we said something unfavorable to him, he would stand up and say that we should just go with the 25 percent tariff, and we had to hold him back."
$450 billion into the U.S. economy
Out of the $450 billion, $100 billion will go toward Korea's purchase of U.S. energy by 2028. The remaining $350 billion investment was labeled "the centerpiece of the deal," according to White House press secretary Karoline Leavitt, with 90 percent of the profits going to the U.S. government to pay off its national debt and fund presidential initiatives.
The claim clashes with Trade Minister Kim's explanation that the investment would be "reinvestment-based."

$150 billion out of $350 billion will be spent on the "Make America Shipbuilding Great Again" initiative, although the question remains how this capital will be allocated. The sum is more than double the combined 87.5 trillion won ($63 billion) market valuation of Korea's three major shipbuilders, HD Hyundai Heavy Industries, Hanwha Ocean and Samsung Heavy Industries. Therefore, a large chunk of the fund is expected to come from loans and guarantees provided by state-run financial institutions such as the Export-Import Bank of Korea and the Korea Trade Insurance Corporation.
Korean shipbuilders might be open to the possibility of acquiring more U.S. shipyards. Hanwha Ocean acquired Philly Shipyard last year and also holds a 9.9 percent stake in Austal, an Australian naval defense firm with shipyards in Alabama and California. Another major shipbuilder, HD Hyundai Heavy Industries, has yet to make a purchase, but the company has said before that it is "reviewing different methods, including acquiring a shipyard through direct investment."
Details on the remaining $200 billion remain unclear, including how it will be structured, where it will be used and how returns will be distributed.

Drawing the line at rice
Views are diverging between Washington and Seoul over agricultural trade. While Leavitt remarked that Korea will provide "historic market access to American goods like autos and rice," multiple high-level officials in Korea have firmly denied the assertion.
Agricultural products such as rice and beef have been treated as nonnegotiable red lines in the tariff talks, given the implications for national food security and rural livelihoods.
"There was no discussion of rice at all," Koo said on Friday, dismissing speculation.
Song Mi-ryeong, minister of agriculture, food and rural affairs, stated on Friday that there would be no further market opening for rice and beef.
"Under the Korea-U.S. FTA, 99.7 percent of our agricultural market is already open, essentially complete liberalization," Song said. She also noted that Korea already imports 132,000 tons of U....