According to ChainCatcher, South Korean Acting President Han Deok-soo recently stated in an interview with the Financial Times that South Korea will not "retaliate" against the United States' tariff policy, citing historical responsibilities towards Washington.
Han emphasized that after the Korean War, the United States provided aid, technology transfer, investment, and security guarantees that enabled South Korea's industrial strength, financial development, and cultural growth.
Facing the Trump administration's decision to impose a 25% "reciprocal" tariff on South Korea this month, Han said that South Korea will seek a solution "more beneficial to both sides" rather than viewing the U.S. actions as a target for retaliation.
To alleviate trade friction, Han proposed that South Korea is willing to discuss measures to reduce its trade surplus with the U.S., including purchasing American liquefied natural gas and commercial aircraft, and strengthening cooperation in naval vessel construction. He also stated that Seoul is willing to discuss non-tariff trade barriers.
Notably, South Korea's trade surplus with the United States is expected to reach a record $55 billion in 2024, with the U.S. having replaced China as South Korea's largest export destination. Leading South Korean conglomerates are investing billions of dollars in building advanced chip, electric vehicle battery, and solar panel manufacturing facilities in the U.S.
South Korea-U.S. trade negotiations are expected to begin next week, with Trump having clearly stated that he will link trade and security issues, including "paying for U.S. military protection provided to South Korea". Han said that there is currently no "clear framework" for discussing security issues, but he is willing to restart cost-sharing agreement negotiations with the U.S. as circumstances evolve.
