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Finance minister says FTA with U.S. still effective despite tariff deal

Published: 06 Aug. 2025, 14:40 Updated: 06 Aug. 2025, 15:20

Minister of Economy and Finance Koo Yun-cheol speaks during a parliamentary session at the National Assembly in Yeouido, western Seoul, on Aug. 6. [LIM HYUN-DONG]

Korea's finance chief said Wednesday that the country's FTA with the United States remains effective despite a recent tariff agreement between the two countries.

Minister of Economy and Finance Koo Yun-cheol made the remarks during a parliamentary session following last week's last-minute deal between Seoul and Washington. Under the agreement, the United States will impose a 15 percent tariff on Korean imports, down from the initially proposed 25 percent, in exchange for an investment by Korea of $350 billion in the United States.

Following the deal, concerns have emerged that the zero-tariff benefits of the FTA could be diminished.

“With a few exceptions, Korea continues to benefit from the FTA,” Koo said, noting that countries without an FTA with the United States are subject to higher tariffs than Korea.

Regarding Seoul's $150 billion commitment to the U.S. shipbuilding industry, Koo said the investment is expected to boost exports and create job opportunities.

“In particular, small- and mid-sized companies could find new opportunities through investments in shipbuilding equipment and parts,” he added.

Addressing concerns over agricultural market access, the minister emphasized that the government has not made additional concessions in the latest negotiations.

“There has been no further market opening for U.S. agricultural products, such as fruits and vegetables, through tariff negotiations,” he said.

The government earlier said that it has successfully safeguarded the interests of the domestic agricultural and livestock sectors through the negotiations.

Yonhap