Key economic cooperation agenda set for discussion at ROK-U.S. summit

In less than a fortnight President Lee Jae Myung and his U.S. counterpart Donald Trump will sit down at the White House to address the finer details of the trade framework hammered out by their trade ministers and pundits believe there are a few points of contention that need to be ironed out.

Our correspondent Moon Ji-young explains.

As the August 25th Korea-U.S. summit approaches, unresolved trade issues are taking center stage.

A primary point of contention is the finalization of Korea's pledged 3-hundred-50 billion U.S. dollar investment.

The two countries notably hold differing views.

While the U.S. asserts the investment plan falls under its president's direction, Korea clarifies that the U.S. dictating all investment destinations is merely "political expression."

Observers point to what to anticipate regarding the summit's outcome.

"President Trump will probably push very hard for Korea to accept his interpretation rather than the Korean or Japanese interpretation. And it will be a very tough pressure because Trump will be negotiating not just for the Korean deal, but he's probably going to use the results from the Korean deal and reinterpretation as a model for Japan, European Union and other countries as well."

Another critical issue is the U.S.'s proposed 100 percent tariffs on foreign-made semiconductors.

The key uncertainty for Korea lies in whether the Most Favored Nation treatment promised by the U.S. will be applied.

In fact, these chip tariffs have a significant impact not only on exporters to the U.S. but also on the American economy.

"In terms of like this meaning of the tariffs, obviously on our daily lives are completely depending on the electronics, such as smartphones, TVs, and internet-based machines. So, in that case, semiconductors are going to be extremely important. Therefore, the prices of consumers and also producers actually will eventually go up, so the most important effect is going to come through the inflation."

Agricultural market access also remains a contentious issue.

While the U.S. calls for "historical market access" for its agricultural products like rice and beef, Korea has firmly rejected any further opening, emphasizing that "there will be no additional market access."

Beyond these points, further non-tariff barriers like Google's high-precision map data export will be crucial issues to monitor at the upcoming summit.

Moon Ji-young. Arirang News.