South Korea, US to launch ministerial-level dialogue channel on supply chains

Minister of Trade, Industry and Energy Lee Chang-yang, right, shakes hands with U.S. Secretary of Commerce Gina Raimondo ahead of their meeting in Seoul, Saturday, in this photo provided by the industry ministry. Yonhap

South Korea and the United States agreed Saturday to launch a ministerial-level dialogue to discuss ways to cooperate on supply chains for key industry items and other economic security issues, Seoul's industry ministry said.

Industry Minister Lee Chang-yang and U.S. Commerce Secretary Gina Raimondo held a meeting in Seoul and signed a memorandum of understanding (MOU) on the establishment of the "Supply Chain and Commercial Dialogue" by upgrading their existing working-level industrial cooperation dialogue platform.

Raimondo is in Seoul for a three-day stay that began Friday accompanying U.S. President Joe Biden.

Under the agreement, the two sides will hold the dialogue once a year and discuss a wide range of industry and economic issues, including resilient supply chains for semiconductors and other high-tech items, the digital economy, healthcare technologies and exports control, according to the Ministry of Trade, Industry and Energy.

They also agreed to boost cooperation on research and development, and create more business opportunities, it added.

How to ensure stable supply chains is one of the key agenda items of the summit between South Korean President Yoon Suk-yeol and Biden set to take place later in the day in Seoul amid a global shortage of semiconductors and supply chain disruptions.

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"The two ministers shared the idea that the current instability in traditional global value chains cannot be resolved through efforts by one country, and cooperation among partner nations is critical," the ministry said in a release.

During the meeting, Lee pledged to actively join the U.S. in its envisioned economic initiative of the Indo-Pacific Economic Framework (IPEF) to establish a resilient and sustainable economic order in the region.

"The envisioned IPEF is expected to serve as a pivot of future-oriented regional cooperation by covering a wide range of issues, including stable supply chains, the digital economy, clean energy and decarbonization," the ministry said in a release.

President Yoon is likely to officially announce the country's intention to join the new framework during his summit with Biden.

Yoon's office said he will virtually attend a summit in Tokyo next week where Biden is poised to formally launch the IPEF.

Lee also asked for Washington's "flexible" approach to the possible revision of the U.S.' Section 232 tariff rules.

South Korea has sought to begin negotiations to revise the 2018 rules, under which the Donald Trump government waived the tariffs on South Korean steel products in return for a yearly import quota of 2.63 million tons of steel, or 70 percent of Seoul's average export volume of steel products over the past three years.

Washington wrapped up negotiations on the tariff issue with the European Union, Japan and Britain this year, but it has maintained a negative stance on beginning talks with South Korea.

Following the meeting, the two ministers attended a roundtable meeting that brought together top executives of South Korea's five largest business groups ― Samsung, SK, Hyundai Motor, LG and Lotte ― as well as officials of Qualcomm, Google, GE Korea and other U.S. companies.

The attendees discussed detailed measures of expanding trade and investment, as well as enhanced cooperation in supply chains, the ministry said. (Yonhap)

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