Good or bad deal? S. Korean officials say trade negotiations with U.S. aren't over

Now that a tariff deal has been sealed with the U.S. what are its broader implications?

Our economic correspondent Kim Do-yeon tells us.

While a framework agreement has been reached on tariffs, dealing with tariffs is far from over.

Deputy Prime Minister for Finance Koo Yun-cheol told reporters that key details still need to be finalized, particularly regarding the 200 billion U.S. dollar investment portion of the 350-billion-dollar package.

As part of the deal, tariffs on most South Korean goods will increase from zero to 15 percent.

"A 15-percent tariff is undoubtedly challenging, especially for a country that has a free trade agreement with the U.S. But if our companies can leverage their creativity and competitiveness, this could turn into a new opportunity. While the broader agreement is done, we will continue to work out the specifics through further talks with the U.S."

Among the headline agreements is MASGA—a strategic shipbuilding initiative led by South Korea and backed by 150 billion U.S. dollars in investment.

This stands in contrast to the remaining 200 billion, which will be largely controlled by the U.S.

The Korean government has emphasized this distinction—especially in light of comparisons with Japan's deal.

Tokyo pledged a 550-billion-dollar investment, and when the deal was announced, President Trump claimed that 90 percent of the profit would go to the U.S.

South Korean officials also underscored the size.

"South Korea has a trade surplus of 66 billion dollars with the U.S., while Japan's is around 68-point-5 billion. Yet our total investment fund is smaller. If you exclude the 150 billion led by our own companies, our actual contribution is 200 billion—just 36 percent the size of Japan's."

On the tariff side, the increase from zero to 15 percent marks a significant shift.

When it comes to cars, an industry with fierce competition, while Korean cars were tariff-free their competitors, Japan and the EU paid 2-point-5 percent.

Now, that advantage has disappeared, leveling the playing field in terms of price competitiveness.

Agriculture and livestock market access—a contentious issue—was not included in the deal, despite strong pressure from the U.S.

Officials revealed that during negotiations, they presented a photo from the 2008 mass protests in South Korea against U.S. beef imports—which drew over 10 million demonstrators reminding U.S. officials it's a red line for them.

On another side note, while President Trump did not meet with any other trade delegations, he made time to meet with South Korean officials.

He later said this was a sign of his "respect for South Korea."

Kim Do-yeon, Arirang News.