S. Korea’s new govt. to delay US trade talks

The new South Korean administration is expected to delay US trade talks to gain leverage by studying Japan and China’s negotiations, according to sources familiar with the ruling party’s strategy.

President Lee Jae-myung, who assumed office immediately after winning the June 3 snap presidential election with no customary two-month transition period, stated on the eve of the elections that the top priority is trade talks with the United States.

The future of South Korea’s export-driven economy will depend on the type of agreement Lee can negotiate, as all of the country’s major industries, including chips, automobiles, and shipbuilding, are highly reliant on international trade.

The new president and his liberal Democratic Party government face a challenging economy with expected growth of only 0.8 per cent this year, the weakest since 2020.

Attribution: Reuters
Subediting: M. S. Salama