US 'not same as before', says S. Korean minister

South Korean Foreign Minister Cho Hyun on Tuesday issued a rare rebuke of the US over the recent detention of South Korean workers in the state of Georgia, as the two allies remain in a deadlock in trade negotiations.

"Recently, I have come to realize that the United States is no longer the same country that used to cooperate well with many allies and friendly countries," Cho said at a parliamentary session in Seoul, according to Yonhap News Agency.

The remark came in response to questions about the Sept 4 immigration raid at a Hyundai-LG plant in Georgia, where over 300 South Korean workers were detained. The crackdown has sparked shock and anger across South Korea, just weeks after President Lee Jaemyung met with his US counterpart Donald Trump in Washington.

On Monday, South Korea's presidential office said the government is looking into potential human rights violations during the raid and subsequent detentions.

Answering a question about the absence of a joint statement on tariff negotiations after Lee's August summit with Trump, Cho said it was because the statement, if documented as it was at the time, could have included "worrisome content" that might have had significant effects on South Korea's economy.

Although the two countries agreed on July 30 to a framework deal reducing the US import duty rate to 15 percent, negotiations have since stalled.

While Washington announced this week it would impose a 15 percent tariff on Japanese automobiles under a bilateral agreement, tariffs on South Korean auto imports remain at 25 percent — putting the country at a significant disadvantage compared with Japan.

Resolving differences

South Korea's Trade Minister Yeo Han-koo is in Washington until Thursday for talks aimed at finalizing a trade deal, with a key focus on resolving the differences over a $350 billion investment package pledged by Seoul.

Washington is demanding a deal similar to the one with Japan, under which the US is reported to receive direct investment from South Korea on terms it has set and take 90 percent of the returns. Seoul, however, has been calling for "a win-win solution".

Kim Tae-hwang, a professor of international trade at Myongji University in Seoul, said it would be impossible for South Korea to match Japan's terms and invest $350 billion in cash, noting Tokyo's foreign exchange reserves stand at $1.3 trillion — more than triple Seoul's $410 billion.

"How much does the US invest through matching funds? Zero," Kim told China Daily. "Taking 90 percent of the investment is economically unacceptable."

He said that support must be provided to ensure a smooth supply and demand of human resources for South Korea's investment and industrial cooperation with the US, as the US work visa system presents great structural challenges to South Korean professionals.

Unlike South Korea's investment expansion in China, channeling capital into the US is more likely to erode domestic manufacturing jobs and production, Hur Jung, an economics professor at Sogang University in Seoul, warned at a forum on Tuesday.

"When direct investment in China increased rapidly in 2000-10, manufacturing employment in South Korea decreased, but the proportion of manufacturing value-added (goods) actually increased," Hur was quoted by Maeil Business Newspaper as saying.

In contrast, between 2015 and 2024, when foreign direct investment in the US surged, both domestic employment share and value-added contribution of manufacturing declined, Hur said.

kelly@chinadailyapac.com