S. Korean industry minister to visit U.S. next week

All News 15:46 June 21, 2018

SEJONG, June 21 (Yonhap) -- South Korea's industry minister will head for the United States next week to discuss Washington's investigation into imported automobiles with U.S. policymakers and business leaders, his office said Thursday.

Last month, the U.S. Department of Commerce launched an investigation into possible tariffs on imported vehicles and auto parts on national security grounds under Section 232 of its trade law.

Paik Un-gyu, minister of trade, industry and energy, will visit Washington D.C. on June 27 to attend the World Gas Conference and later meet with government and corporate leaders to share Seoul's position about the probe into imported vehicles.

"The government will actively respond to the 232 Section investigation with strategic outreach efforts," a senior ministry official said.

The ministry said it will submit a written statement claiming South Korean autos do not pose risks to U.S. security on June 29 and send a delegation to a public hearing slated for July 19-20 in Washington.

Though the target and scope of the investigation hasn't been revealed, Seoul officials and Korean automakers have expressed concerns that the Donald Trump administration's move could add uncertainty to the market in the short term. A similar investigation launched under Section 232 last year resulted in a 25 percent tariff on imported steel, although in many cases Washington has not applied hefty duties and settled for a quota system.

While Korean-made autos are exempt from U.S. duties under the bilateral trade pact implemented in 2012, market watchers say possible new tariffs could deal a heavy blow to local manufacturers and parts makers.

Out of 2.53 million Korean vehicles sold abroad last year, about 33 percent were shipped to the U.S., according to data compiled by the Korea Automobile Manufacturers Association. South Korea exported 178,980 vehicles to the key market in the first quarter of 2018, down 22 percent from a year earlier.