South Korea’s presidential office on Thursday sought to downplay remarks by US Secretary of Commerce Howard Lutnick that “90 percent of the profits” from Korea’s investment into the US will go to the American people, saying it understood the figure as part of a “reinvestment concept.”
Earlier, US President Donald Trump announced that the US and Korea have established a “full and complete” trade deal, saying that Korea pledges to invest $350 billion into sectors “owned and controlled by the United States” and selected by Trump.
Regarding this trade deal, the Korean government stated that $150 billion has been assigned for shipbuilding cooperation, while investments in chips, batteries, biotechnology and nuclear energy cooperation accounted for the remaining $200 billion.
Adding on to Trump’s announcement, US Commerce Secretary Howard Lutnick wrote on X that "90 percent of the profits" will be “going to the American people.” He claimed that the recent trade deals “reflect the clear understanding that President Trump’s tariff and trade agenda has the power to reshape global commerce.”
When asked about Lutnick’s comments, presidential chief of staff for policy Kim Yong-beom told reporters that it is "difficult to discuss further details.”
“We have documented the matter slightly differently in a memorandum, but we are unable to disclose everything,” said Kim, adding that the US side is fully aware of the understanding and expectations of the Korean side.
Kim added that the split between the 90 percent and the 10 percent appeared to mirror phrasing previously used during trade negotiations between the US and Japan back on July 23.
“We don’t have any intentions to argue over expressions, but the deal is not being negotiated that way,” Kim added.
During the presidential office’s press briefing, Kim pointed out that the official text issued by the US reads “retain 90 percent of the profits from this investment,” which, according to Kim, makes it difficult to interpret exactly what Washington intends.
“Since it’s not yet clear who will invest how much and where, it’s difficult to infer precisely what the US is thinking,” said Kim. “Our interpretation here is that it essentially refers to reinvestment — that instead of profits immediately leaving as dividend outflows, they will remain in the US.”
The presidential chief of staff added that Korea was open to the arrangement if it ensured long-term benefits.
“If the US recommends truly good business opportunities, provides purchase guarantees and ensures our firms remain firmly involved, that would be fine,” Kim said. Mentioning that further discussions regarding investments are still rolling, Kim added that Korea expects to have opportunities to voice its opinion, “to ensure that the fund operates in a way that doesn’t harm (Korea’s) interests.”
Comparing Korea’s trade deal with Japan’s earlier agreement with Washington, Kim noted that Korea’s $350 billion fund is significantly smaller than Japan’s $550 billion pledge, despite both countries recording similar trade surpluses with the US in 2024 — $66 billion for Korea and $68.5 billion for Japan.
“Excluding the $150 billion shipbuilding fund led by Korea, (Korea’s) investment fund amounts to just 35 percent of Japan’s,” Kim said, emphasizing that “more safeguards were built into (Korea’s negotiations).”
lee.jungjoo@heraldcorp.com
