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In a notable development for international trade relations, South Koreas acting president, Han Duck-soo, has asserted that the country will not retaliate against tariffs imposed by the United States. This announcement comes as trade discussions with the Trump administration are set to commence next week. Han, who stepped into the presidency following the constitutional court's decision to remove former president Yoon Suk Yeol from office earlier this month, emphasized the historical bond between South Korea and the United States, stating, the role of the US was huge in making Korea what it is now.

Reflecting on the aftermath of the Korean War, Han elaborated on how the United States provided crucial support in the form of aid, technology transfers, investments, and security assurances. He remarked that this support was instrumental in transforming South Korea into a favorable environment for foreign investments. Our industrial prowess and our financial development and our culture and growth and wealth are very heavily due to the help from the United States, he added in an interview with the Financial Times.

Hans comments reveal a deep-seated gratitude toward the U.S., particularly as his administration prepares to enter negotiations with President Trump. Instead of framing the discussions as a confrontation in response to tariffs, he expressed a desire to seek solutions that benefit both nations. This approach reflects South Koreas status as one of the United States' closest allies in Asia, both economically and strategically.

South Korean officials expressed their discontent when President Trump announced a hefty 25 percent tariff on the nation, despite an existing free trade agreement that largely removes tariffs on American goods. Additionally, prominent South Korean automotive manufacturers, such as Hyundai and Kia, have been adversely affected by a separate 25 percent tariff imposed on automakers from the region. Furthermore, South Korea's chipmakers and pharmaceutical firms are bracing for potential tariffs due to a recent national security investigation initiated by Washington.

In light of the challenges posed by these tariffs, South Koreas leading conglomerates are investing tens of billions of dollars into the construction of advanced manufacturing facilities focusing on sectors such as semiconductor production, electric vehicle batteries, and solar panel technology. This investment strategy is vital for maintaining competitiveness and ensuring economic resilience in the face of external pressures.

Interestingly, despite these tariffs, South Koreas trade surplus with the U.S. reached a record high of $55 billion in 2024, as the United States has overtaken China to become South Korea's largest export market. Han indicated that South Korea is prepared to discuss ways to reduce this trade surplus, including purchases of U.S. liquefied natural gas and commercial aircraft.

He also highlighted the potential for increased cooperation in naval shipbuilding, which could benefit U.S. strategic interests in the region. Additionally, Han acknowledged the longstanding grievances from the U.S. regarding South Koreas non-tariff trade barriers, such as stringent auto emissions regulations, unclear pharmaceutical pricing practices, restrictions on American beef imports, and network fees imposed on content providers like Netflix.

While Han acknowledged that some sectors might face challenges as a result of these negotiations, he is optimistic that a broader liberalization of trade would ultimately benefit the South Korean populace.

Simultaneously, the Trump administration has launched trade talks with Japan, signaling its intent to prioritize relationships with close allies as part of a strategy to recalibrate the presidents aggressive trade policies that have caused turbulence in global markets.

President Trump, who previously hinted at the possibility of withdrawing U.S. military presence from the Korean peninsula, has now expressed intentions to link trade negotiations with security matters. He mentioned that discussions would include payment for the big-time military protection we provide to South Korea, a prospect that raises significant concerns for Seoul, which heavily relies on U.S. military support to counter the North Korean nuclear threat.

In his conversation with the Financial Times, Han acknowledged the absence of a clear framework for addressing security issues but indicated a willingness to revisit a cost-sharing arrangement previously made with the Biden administration regarding the 28,500 U.S. troops stationed in South Korea.

Han's position as an unelected official serving as both acting president and prime minister has drawn scrutiny, particularly regarding his authority to negotiate agreements that may reshape U.S.-South Korea relations for years to come. Some opposition parties have raised alarms that any deal negotiated by Han could limit the options available to his future elected successor. South Korea is scheduled to conduct a snap presidential election in early June to replace Yoon Suk Yeol, who faced impeachment following his controversial attempts to impose martial law last year.

Despite the criticisms, Han firmly rejected claims that his negotiations would lack democratic legitimacy. He asserted that his authority originates from the constitution and relevant laws, emphasizing there is no distinction between what acting presidents or elected presidents can do.

Interestingly, there is growing speculation among certain South Korean conservatives regarding Han's potential candidacy for the presidency. Some supporters view him as a stabilizing figure amidst the turmoil within Yoons Peoples Power party following the martial law crisis. However, Han has refrained from making any commitments regarding a presidential run, stating that he has not yet made a decision, and when pressed further, he simply responded: No comment.