Following last week’s U.S.-Japan and U.S.-EU agreements—both locking in a 15% tariff rate on most exports—South Korea remains one of the few major Asian economies without a deal. Seoul’s plan includes increased access to its agricultural market and a multi-hundred-billion-dollar investment fund for American industries, similar to Japan’s $550 billion pledge.

South Korean Industry Minister Kim Jung-kwan has shuttled between Washington and Europe, emphasizing the urgency. “We confirmed the U.S. side’s strong interest in shipbuilding,” said South Korea’s presidential office, which declined further comment.

Korean officials say they are under significant U.S. pressure to make painful concessions on livestock and rice imports. “We’re doing our best to protect domestic industries,” said Woo Sang-ho, a senior aide in the president’s office.

Stakes High As Seoul Faces Domestic, Economic Pressure

South Korea’s shipbuilding industry, second only to China’s, sees the U.S. initiative as a lifeline and an opportunity to deepen defense ties. The proposal reportedly includes co-building port cranes and investing in U.S. infrastructure projects.

At stake is a potential 1.7% hit to South Korea’s GDP if no deal is reached, according to Bloomberg Economics. With exports accounting for over 40% of its economy, Korea faces high stakes amid global trade realignments.

U.S. negotiators have linked tariff relief to broader strategic objectives, including defense cooperation and alignment on Indo-Pacific trade. Talks are now focused on replicating the 15% tariff benchmark set by Japan and Europe, but some sectors—especially auto and agriculture—remain contested.

Economist Kathleen Oh of Morgan Stanley warned that Korea and Taiwan may need to accelerate their own large-scale investment pledges to secure favorable terms: “Japan’s deal set a high bar. The clock is ticking.”