• South Korea targets an "in-principle" trade deal with the US by August 1.
• Trade Minister Yeo Han-koo discusses potential agricultural market access.
• Seoul seeks to avoid a 25% tariff set by the US on exports.
• Discussions include sector-specific tariff cuts on autos and steel.
• South Korea recorded a $55.6 billion trade surplus with the US in 2024.

South Korea's top trade envoy has indicated that it may be possible to form an "in-principle" trade agreement with the United States by an August 1 deadline. Trade Minister Yeo Han-koo mentioned that greater access to South Korean agricultural markets might be part of the negotiations, as reported by local media Reuters, Channel News Asia, and The Jakarta Post.

During high-level talks with US officials, Minister Yeo emphasized the need to avoid "unfair" US tariffs that could undermine vital industrial sectors in South Korea. He explained, "Twenty days are not enough to come up with a perfect treaty that contains every detail," highlighting the necessity for more time to negotiate on various aspects including agricultural sectors where "sensitive" areas may require ongoing protection Reuters, Channel News Asia, and The Jakarta Post.

The urgency of these negotiations is underscored by the looming threat of a 25% tariff on South Korean exports, which is expected to take effect on August 1. This timeline has introduced pressure on the new South Korean administration, led by President Lee Jae-myung, who took office on June 4 amid significant political upheaval Reuters, Channel News Asia, and The Jakarta Post.

In discussions, there has been "considerable progress" regarding cooperation in essential industrial sectors, with the US called to consider reductions in tariffs on automobiles and steel. A senior South Korean trade official noted that the US has previously shown willingness to discuss exemptions similar to those agreed upon with Britain if South Korea offers a clear plan to address trade deficits Reuters, Channel News Asia, and The Jakarta Post.

Furthermore, South Korea's trade surplus with the US surged to a record $55.6 billion in 2024, a 25% increase from the previous year, largely driven by rising automobile exports. The effective tariff rates for South Korea stand near zero under the existing US-Korea free trade agreement Reuters, Channel News Asia, and The Jakarta Post.