(2nd LD) Lee tells Bessent he expects progress in U.S. trade talks based on 'commercial rationality'
NEW YORK, Sept. 24 (Yonhap) -- President Lee Jae Myung has told U.S. Treasury Secretary Scott Bessent that he expects to make progress in trade negotiations with Washington in a way that serves both countries' interests based on "commercial rationality."
The meeting between Lee and Bessent was held on the sidelines of Lee's attendance at the U.N. General Assembly, as Seoul and Washington work to finalize the details of a framework trade deal reached in late July, which includes Seoul's US$350 billion investment pledge.
"Regarding the investment package, President Lee said he hopes discussions will move forward in a way that aligns with the interests of both South Korea and the United States, based on commercial rationality," Kim Yong-beom, the presidential chief of staff for policy, told reporters.
Lee also noted that, unlike Japan -- which recently struck its own investment deal with Washington -- South Korea differs significantly in terms of economic size, foreign exchange reserves, market structure and infrastructure, and he stressed these differences should be reflected in the talks.
Bessent said U.S. President Donald Trump fully recognizes South Korea's importance as a partner and has repeatedly emphasized its role, particularly in the shipbuilding sector, according to Kim.
The secretary added that South Korea's investment and cooperation in critical industries such as shipbuilding are highly valued and expressed appreciation for Seoul's active support, he noted.
During the talks, Lee explained the need to have a currency swap arrangement with the U.S. to cushion the impact of South Korea's $350 billion investment pledge on the financial market, Kim said.
In a recent Reuters interview, Lee warned Seoul could face a financial crisis if it accepts Washington's demands without safeguards, such as a swap line.
Kim described Lee's meeting with the treasury secretary, who oversees foreign currency policy, as a "major watershed" in the stalled trade negotiations, expressing hope for progress before the Asia-Pacific Economic Cooperation (APEC) summit next month, where Lee is expected to meet Trump.
"An unlimited currency swap is a necessary condition," Kim said. "Without it, the impact on our country would be too severe, and we cannot move forward without resolving this issue."
Kim added that Seoul is negotiating with urgency, particularly in the auto sector, as Washington has insisted tariff reductions to 15 percent, agreed in a July deal, will take effect only after a written agreement.
Korean automakers are considered at a disadvantage compared with foreign rivals as they are under higher sectoral tariffs after the U.S. cut tariffs on European cars to 15 percent retroactive to Aug. 1, following the same reduction for Japanese vehicles last week.
ejkim@yna.co.kr
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