South Korea's trade minister revealed that no formal written agreement exists for the recent trade deal announced by President Donald Trump.
According to Newsmax, Trade Minister Yeo Han-koo explained that negotiations were conducted orally due to time constraints when speaking to reporters upon his return from Washington. The deal, announced following Wednesday's meeting between Trump and South Korean ministers, reduced potential tariffs on South Korean imports from a threatened 25% to 15%.
Yeo warned that despite overcoming the immediate crisis, South Korea cannot relax as the US trade environment has fundamentally changed compared to Trump's first term. "I think we are entering a new normal era," he stated, expressing concern about potential future pressure from tariffs or non-tariff measures.
Trump announced that South Korea would invest $350 billion in United States projects that would be "owned and controlled by the United States" and selected by him.
Commerce Secretary Howard Lutnick claimed 90% of profits from these investments would benefit the American people, while White House Press Secretary Karoline Leavitt specified they would help the US government repay national debt. South Korean Industry Minister Kim Jung-kwan acknowledged that more discussions are needed regarding the investment fund's profit structure.
Finance Minister Koo Yun-cheol, who was part of the negotiation team, indicated that detailed plans for the massive investment still need to be established. The lack of specificity raises questions about how the investment will be structured and implemented without a formal written agreement in place.
The White House has not yet released a factsheet on the South Korean trade agreement despite doing so for similar deals with Japan and the European Union.
Unlike those agreements, details of the South Korean deal have primarily come through Trump's social media posts and statements from Commerce Secretary Lutnick. This communication approach differs significantly from the more formal documentation provided for other recently negotiated trade arrangements.
The absence of official documentation has created uncertainty about the specific terms and implementation timeline for the agreement. South Korean officials returning from Washington have emphasized the preliminary nature of the deal and the need for further negotiation on multiple fronts.
Wednesday's agreement did not address most non-tariff barriers that had been discussed during earlier working-level talks between the two countries.
Security concerns and foreign exchange aspects also remain unresolved, according to information provided by the South Korean delegation. These outstanding issues highlight the preliminary nature of the agreement and suggest significant work remains before implementation.
Yeo's characterization of the changing US trade environment as "completely different" from Trump's first term indicates South Korean officials anticipate a more challenging negotiating landscape going forward. The oral nature of the agreement creates potential uncertainty about enforcement mechanisms and specific commitments from both sides.
The oral nature of the agreement points to potential instability in the future of U.S.-South Korea trade relations. Without binding documentation, either side could reinterpret or withdraw from aspects of the deal with limited consequences.
Trade analysts suggest this development marks a significant shift in how the United States approaches trade negotiations with even its closest allies. The focus on direct investment commitments rather than traditional trade balancing mechanisms signals a new approach to addressing trade deficits.
The agreement demonstrates the leverage the U.S. maintains over trading partners through tariff threats, while also highlighting South Korea's willingness to make major concessions to maintain market access. As both sides work toward formalizing the deal, the details that emerge will reveal much about the future direction of this crucial economic relationship.
