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2025-09-19 11:05:07
[Citi: South Korea may reach a partial compromise with the United States on trade issues] Jin-Wook Kim, a South Korean economist at Citi, said that South Korea may reach a partial compromise with the United States in trade negotiations rather than facing reciprocal auto tariffs of 25% or higher. However, the latter possibility may increase if other economies accept the terms of the US investment agreement. Kim said in a report that given structural constraints, South Korea's $350 billion investment fund in the United States seems unlikely to be finalized quickly in the short term. Washington may accept South Korea's request to reduce the annual financing amount and make commitments to key industries such as shipbuilding and batteries without binding terms. However, Kim warned that if the negotiations fail, South Korea's manufacturing industries such as automobiles and home appliances that rely on US demand may be affected, and South Korean private enterprises' investment in the United States may also stagnate.
