South Korean presidential policy chief says 'optimistic' about US tariff talks

SEOUL: South Korea's chief presidential policy adviser said on Thursday he was "optimistic" about ongoing talks to finalise a trade deal with the U.S., in the latest remarks by officials suggesting progress in negotiations that had stalled for months.

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South Korea and the US are close to finalising a trade deal, with Seoul aiming for tariff cuts and investment safeguards.
Negotiations stalled over auto tariffs and investment details, while Japan secured its deal with larger commitments.
South Korea's markets surged on optimism, with Hyundai and Kia stocks jumping amid hopes for a finalised agreement.

Kim Yong-beom and Industry Minister Kim Jung-kwan spoke to reporters before departing for the United States. They will be joining Finance Minister Koo Yun-cheol and Minister for Trade Yeo Han-koo for follow-up negotiations in Washington.

Kim's comments echo Minister Koo's remarks earlier this week that there was "huge progress" and Foreign Minister Cho Hyun saying there were "positive signals" in reaching a deal.

On the U.S. side, Treasury Secretary Scott Bessent said on Wednesday the countries were close to finalising a trade deal and he expected an announcement in the next 10 days. Seoul has been seeking to reach a deal by late October when U.S. President Donald Trump is due to visit the country for an Asia-Pacific summit.

South Korea agreed in late July a preliminary deal with Trump lowering U.S. tariffs on imports to 15% from 25%, in return for South Korean investment of $350 billion in U.S. strategic industrial sectors.

A promised cut in U.S. tariffs on auto imports to 15% from 25%, however, has not been implemented for South Korea amid stalled negotiations over the details of the investment package, while rival Japan secured this last month after finalising its deal including $550 billion investments in the U.S.

Seoul has been concerned over the foreign exchange implications and the structure of the investment package and asked Washington for a safeguard, such as a currency swap line, to prevent any currency market impact.

South Korea's benchmark KOSPI stock index .KS11 rose as much as 1.9% to a record high on Thursday, as shares of Hyundai Motor surged 9.6% to a one-year high and sister automaker Kia jumped 8%.