Anchor: South Korea and the United States reached a framework trade deal back in July, but it has yet to be signed due to differences on the fine print. As negotiations drag on, U.S. President Donald Trump’s commerce secretary is pressing Seoul to take the deal or face tariffs.
Rosyn Park reports.

Reporter: U.S. Commerce Secretary Howard Lutnick said on Thursday in an interview with CNBC that South Korea should either accept the framework trade deal it struck with the U.S. back in July, or face tariffs.

Seoul and Washington earlier reached an agreement to lower reciprocal tariffs on cars and other goods to 15 percent for South Korea’s commitment to invest 350 billion dollars in key U.S. industries such as shipbuilding and semiconductors.

However, the two sides have hit an impasse over the terms of the deal such as the makeup of the investment package, funding and how to handle returns from investments, despite multiple rounds of working level-talks.

[Soundbite: U.S. Commerce Secretary Howard Lutnick]
"The Koreans didn't sign when the president was in ... You remember that he came to the White House. Notice how we didn't talk about trade because he didn't sign the piece of paper." 

Lutnick referred to the trade deal that the U.S. reached with Japan this week, stressing that there will be no flexibility for South Korea.

[Soundbite: U.S. Commerce Secretary Howard Lutnick]
"I mean, the devil is in the details. I think they saw the Japanese now, so there's no flexibility. The Japanese signed the contract ... The Koreans either accept that deal or pay the tariffs. Black and white. Pay the tariffs or accept the deal."

In response, the South Korean presidential office on Friday reaffirmed that Seoul will continue trade and tariff negotiations with Washington while placing top priority on national interests.

Some analysts say that if Seoul and Washington are unable to reach a compromise, the Trump administration may withdraw the 15 percent reciprocal tariff agreement and raise it back to 25 percent.

Minister of Trade, Industry and Energy Kim Jung-kwan is now in Washington for follow-up discussions with Lutnick and other trade officials.
Rosyn Park, KBS World Radio News.