Move FM Global News

SEOUL, South Korea: With just a day left before a critical August 1 deadline, South Korea is pulling out all the stops to strike a trade deal with the United States that could shield its key exports from steep new tariffs. A potential shipbuilding partnership is at the heart of Seoul’s proposal.

Finance Minister Koo Yun-cheol, speaking to reporters before departing for Washington on July 29, said he would present a “programme” aimed at fostering long-term cooperation, including in industries like shipbuilding.

“We will make the best effort to derive an agreement based on our national interest that would allow South Korea and the United States to co-exist,” Koo said.

Talks with U.S. Treasury Secretary Scott Bessent are scheduled for July 31. The meeting had originally been set for last week but was postponed due to a scheduling conflict on the U.S. side.

“Treasury Secretary Bessent holds the important position of overseeing trade negotiations in the Trump administration,” Koo noted.

To support negotiations, Hanwha Group, parent company of shipbuilder Hanwha Ocean, has submitted a significant investment plan to South Korean officials. According to two people familiar with the matter, the proposal involves expanding operations at its Philly Shipyard in Pennsylvania. The plan includes participation from Hanwha Group and affiliated companies.

Hanwha Group Vice Chairman Kim Dong-kwan also traveled to Washington to aid the talks, according to South Korean media.

Seoul is facing mounting pressure to secure a deal before U.S. President Donald Trump’s tariff threats take effect, potentially impacting major South Korean exports.

Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo are already in Washington to negotiate with senior U.S. officials, including Commerce Secretary Howard Lutnick.

Lutnick emphasized the intensity of the talks in a Fox News interview Monday. “Think of how much they really, really want to get a deal done,” he said, noting that South Korean officials even flew to Scotland to meet with him.

In a further show of diplomatic effort, Foreign Minister Cho Hyun is also headed to Washington for talks with U.S. Secretary of State Marco Rubio, after first stopping in Japan to meet his counterpart.

South Korea’s last-minute diplomatic push signals how high the stakes are. The looming tariff deadline threatens to disrupt the country’s vital trade ties with the U.S.