South Korea Rejects⁤ Trump’s Claim of 90% Profit Share in ⁢Trade ⁤deal

Seoul pushes back on⁣ U.S. Commerce Secretary’s assertion,emphasizing reinvestment and project-specific terms.

South Korea is operating under the assumption that a meaningful portion of its $350-billion investment in the United ⁣States will be⁢ reinvested, not unilaterally claimed by the U.S., according to a senior⁢ South Korean official. The clarification comes after U.S.Commerce Secretary Howard Lutnick claimed ⁤on⁢ social media that “90% of ⁢the profits” from the deal would go “to the American people,” a statement that has drawn sharp criticism and raised eyebrows in Seoul.

The assertion mirrors similar claims made by President Trump regarding a $550-billion investment package with⁢ Japan. However, Japanese officials have indicated that profits would be split proportionally based on each‍ nation’s contribution and risk.

South Korean officials, including Kim, have⁣ stressed that the terms of the investment are still being defined‍ and will be laid out on a “per-project basis.” Kim questioned‍ the fairness of such a lopsided⁢ profit distribution,⁣ asking, “In a normal civilized country, who would be able to accept that we invest the money while the U.S. takes 90% of the profits?”

A Deal for Mutual Growth, Seoul Argues

South Korean President Lee Jae-myung has framed the substantial investment as a ‍strategic move to bolster South‍ Korean⁢ shipbuilding, semiconductor, and energy ⁣companies⁣ seeking to expand their presence ⁤in the U.S. market.

“This agreement is the⁢ meeting of the ⁢U.S.’ interest in reviving manufacturing‍ and our ⁢intention to make South Korea companies more⁤ competitive in the U.S. market,” Lee stated in a social media ⁢post.He expressed hope⁣ that the deal would strengthen industrial cooperation and the existing military alliance between the two nations.

Trade Concessions: agriculture Remains a Point of Contention

While President Trump suggested‍ that South Korea would be “entirely OPEN TO TRADE with the United States, and that they will accept American product including Cars ⁤and Trucks, Agriculture, etc.,” South ⁢Korean officials have clarified that agriculture was not part of the recent trade agreement. Specifically, no concessions were made on U.S. rice or beef,which⁢ have historically been significant‍ points of negotiation⁢ between Seoul and ⁤Washington.

South Korea, a major importer of American⁣ beef, maintains a ban on beef from cattle older than⁢ 30‍ months ⁢due to concerns about bovine spongiform encephalopathy (BSE), commonly known as mad cow disease.

Rice, a staple crop and crucial for the livelihoods of South Korean farmers,‍ is heavily protected by the government. Seoul currently imposes⁢ a⁣ 5% tariff on U.S. rice imports up to⁤ a quota of 132,304 tons, with tariffs ⁣soaring to 513% for any amount exceeding that limit.

“We⁤ were able to successfully defend a lot of our positions in those areas,” Kim affirmed, indicating⁣ that South Korea successfully protected its⁣ interests regarding these sensitive agricultural products.