In a significant move to address non-market policies and unfair trade practices, US Treasury Secretary Scott Bessent announced that the United States and South Korea have finalized a robust cooperation framework on critical minerals. This landmark agreement is expected to deepen collaboration and enhance market-based principles between the two nations.
Secretary Bessent’s remarks came during a productive meeting with South Korea’s Finance Minister Koo Yun-cheol in Washington, as detailed in a press release from the Treasury Department. Bessent expressed his satisfaction with the finalization of the US-Korea critical minerals framework, highlighting its pivotal role in fostering deeper collaboration and upholding market-based principles to counter detrimental trade practices.
Beyond critical minerals, the discussions also covered South Korea’s ambitions to emerge as a global hub for artificial intelligence (AI). The ministers explored how advancements in AI could significantly contribute to the G20’s strategic focus on boosting global productivity and fostering economic growth.
Addressing economic stability, both Minister Koo and Secretary Bessent concurred that excessive volatility in the Korean won is “not desirable.” They committed to continuing close consultations on foreign exchange market developments to maintain stability.
Furthering their economic partnership, the officials shared updates on the progress of their bilateral trade and investment agreement. They emphasized ongoing steps towards its “swift and faithful” implementation, underscoring the commitment to strengthening mutual economic ties.
This follow-up comes after the previous year’s agreement, where South Korea pledged an investment of $350 billion in the United States, capped at $20 billion annually. In reciprocity, the US committed to reducing its tariffs on South Korean goods from 25 percent to 15 percent, further solidifying the robust economic alliance between the two countries.
