SEOUL (Reuters) -South Korea and the United States said they reached a deal that would set U.S. tariffs on most South Korean goods at 15% in return for $350 billion in investment in the U.S.
Officials, analysts, and companies in Seoul said the deal removed uncertainty. Here are some key quotes.
KATHLEEN OH, CHIEF KOREA ECONOMIST AT MORGAN STANLEY
“Our initial take is that it is a case of the worst avoided, with a pinch of relief removing Korea-specific tariff risks. We also see this as broadly positive, as it puts Korea on level ground with its export competitors in the U.S., especially for autos.
“Now that the trade deal uncertainty is removed, the BoK will revise its growth forecast higher on the latest stimulus package. We believe continued stabilisation in the housing market trend now holds (the) key before we see the next cut in August.”
HYUNDAI MOTOR GROUP STATEMENT
“For Hyundai Motor Group, this agreement validates our unwavering confidence in the U.S. market and our commitment to American manufacturing. Our $21 billion investment plan through 2028 – building upon our existing $20.5 billion commitment – represents one of the largest foreign investments in American automotive history. Our U.S. investments will create more than 100,000 direct and indirect jobs, supporting 570,000 American jobs. This agreement ensures we can continue scaling these commitments with confidence.”
SAMSUNG ELECTRONICS CHIEF FINANCIAL OFFICER PARK SOON-CHEOL
“We believe that the uncertainty has been reduced through the conclusion of negotiations between the United States and South Korea. We are closely monitoring the follow-up discussions between the two governments regarding the detailed contents of the recently announced agreement, and we plan to formulate our response strategy accordingly.”
CHEONG IN-KYO, SOUTH KOREA’S FORMER TRADE MINISTER
“We avoided the worst and chose the second best; 15% was in line with expectations. But when talking about investments, what was promised is going to be very important. Depending on how and where $350 billion will be spent, this fund will be looked at differently. If that money only flows into the U.S. or supports South Korean companies’ investments there. If that’s about South Korean companies’ investment, that can be helpful in a way that South Korean companies can fill the vacuum by going into the U.S. while China is moving out, when the U.S. is reforming its manufacturing.”
KIM GUNN, SOUTH KOREAN FORMER DIPLOMAT AND CURRENT OPPOSITION LAWMAKER
“If the agreement was reached on equal terms compared to our competitors, it is a bit of a relief. At the very least, our companies will be able to compete in the U.S. market, but the devil is in the details, isn’t it? So details are going to be far more important. For now, President Trump is able to boast about the deal domestically. We need to look into the details to see if we’ve made excessive concessions.”
(Reporting by Korea bureau; Editing by Kate Mayberry)
