U.S.-South Korea tariff talks: Currency, LNG Deals, and Trump's last strategy in focus

Welcome to Within The Frame, where we bring the most pressing issues across the globe into focus. I'm Kim Mok-yeon.

Beginning today, official negotiations on tariffs between South Korea and the U.S. will kick off, as both sides aim to address the ongoing trade tensions.

The two countries have agreed to focus their discussions under four main sectors: tariffs, economic security, investment cooperation, and, notably, exchange rates.

While the U.S. seeks a fast-paced resolution, South Korea is calling for a more measured approach, largely as the nation awaits a snap election in June.

This timing and the differing priorities raise critical questions about how the acting government will navigate these high-stakes talks with the U.S.

For more on this, we connect to Lee Yoon-soo, Professor of Economics at Sogang University. Welcome.

Also joining us is Chai Sang min Professor of Business admin, at Ewha Woman's University.

(LEE) 1. So, Prof. Lee, during the recent "2+2 Trade Consultation," the inclusion of "exchange rates" as a key issue was unexpected. How significant is this for South Korea's economy, and what impact could this have on the country's currency policy and broader economic strategies?

(CHAI) 2. There is speculation that the U.S. might push for a "second Plaza Accord" in a bid to weaken the dollar. Could you explain to our viewers what this is and what effects this could have on South Korea's foreign exchange stability?

(LEE) 3. If the U.S. continues to link exchange rates to trade imbalances, Prof. Lee, how could this affect the overall tone and outcome of the South Korea-U.S. tariff discussions? And what strategies should South Korea adopt to mitigate the impact on its economy?

(CHAI) 4. Now let's also touch upon key rates. Prof. Chai, given the significant difference between U.S. and South Korean interest rates, could the U.S. pressure South Korea's central bank, the Bank of Korea, to adjust its policies? How would such pressure affect South Korea's monetary policy?

(CHAI) 5. The U.S. is seeking South Korea's participation in the Alaska LNG project as part of broader trade negotiations. What potential benefits or risks does this present to South Korean businesses?

(LEE) 6. There's also some concerning news that the IMF expects a 1.5% global economic contraction compared to its previous forecast before Trump's inauguration, possibly affected by his trade policies. How do you see this impacting South Korea's economy? Prof. Lee, what specific strategies should the government implement to cushion the economic blow?

(CHAI) 7. Donald Trump Jr., the son of U.S. President Donald Trump, came to South Korea today at the invitation of Shinsegae Group Chairman Jeong Yong-jin. During his two-day visit, Trump Jr. will meet with top executives of major South Korean conglomerates. Prof. Chai, how do you foresee this visit influencing business relations between the two countries, in light of the ongoing tariff negotiations?

(LEE) 8. Meanwhile, in a significant move, Trump has announced plans to separate tariff and defense negotiations. From an economic perspective, what do you think is the strategic reasoning behind this decision? How might this shift in approach influence South Korea's leverage in trade negotiations?

(BOTH) 9.-10. Given that President Trump has indicated a fast-paced resolution to the tariff discussions, giving a timeline of less than a month, and South Korea still awaiting a snap election in two month's time, how should the current government under an acting presidency navigate its discussions with the U.S.?