South Korea seeks delay in US tariffs amid transition to new government

ISTANBUL

South Korea seeks a delay in the US reciprocal tariffs until the new government is formed, said the finance minister on Tuesday.

Finance Minister Choi Sang-mok said in parliament that the government planned to "negotiate as much as possible" for the "national interest" and "wrap the rest up under the new government," on the reciprocal tariffs with the US, according to Chosun Biz news.

The US had placed 25% reciprocal tariffs on Seoul earlier along with many countries, which is now delayed.

Seoul's "most urgent" priority is to delay the tariffs "as much as possible" to help minimize "uncertainty" the country's companies face in the global market, Choi said.

Choi, while not ruling out the possibility of the acting President Han Duck-soo visiting the US for negotiations, said the priority is to start with a ministerial meeting.

A new government will be formed after the snap elections on June 3.

Seoul earlier in the day also announced a package of $23.2 billion won to increase investment in chips, the Seoul-based Yonhap News reported.

Separately, South Korea is continuing to "actively" engage in negotiations with Washington over its placement in the US Energy Department’s “Sensitive and Other Designated Countries List ” as the list came into effect on Tuesday, according to the media outlet quoting the Foreign Ministry.

Under the previous Biden administration, South Korea was placed in the "lowest" category of the US list.

"We have been actively engaging in negotiations, including working-level consultations at the director-general levels with the US Department of Energy, together with relevant ministries," the ministry said, saying that both sides agreed to resolve the matter "promptly through due procedures."