The countdown for the Korea-U.S. trade negotiations has begun! Lee Jae-myung admits that "the demands of both sides are still unclear."

According to Zhitong Finance APP, South Korean President Lee Jae-myung stated that it is currently unclear whether trade negotiations between Seoul and Washington can reach an agreement before next week's deadline to avoid U.S. President Trump implementing comprehensive tariffs.

In his first press conference since taking office on Thursday, Lee said, "We are doing our utmost," and added, "Currently, both sides are still unclear about what the other wants," noting that negotiations have not gone smoothly so far.

In addition to trade and economic issues, Lee also stated that he would restore dialogue with North Korea and improve relations with China and Russia. As an important ally of the United States and a major exporter of automobiles, semiconductors, and batteries, South Korea's businesses and economy are deeply caught in the crosshairs of Trump's tariff policies.

South Korea's exports account for more than 40% of its economic output, making the country particularly vulnerable to the impact of U.S. tariffs and their effects on global trade.

Seoul officials have acknowledged that the likelihood of reaching a trade agreement before the higher tariffs are imposed on July 9 is extremely low. If an agreement is not reached or postponed, South Korea's comprehensive retaliatory tariffs on U.S. export goods will rise from 10% to 25%. Trump has increased pressure on countries to reach agreements by indicating that he does not intend to extend the deadline.

South Korean Trade Minister Yeo Han-koo emphasized at a separately held strategic meeting that as July 9 approaches, South Korea faces a "severe" predicament. "We cannot rule out the possibility of additional tariffs," Yeo urged officials to prepare for negotiations with "extraordinary urgency" and to develop measures to respond to all possible scenarios, stating, "We will do our utmost to ensure that we are not treated less favorably than other major countries."

These tariffs come after six months of political turmoil in South Korea, making the timing quite awkward. Due to tariff uncertainties, South Korea's economy contracted in the first quarter, and the Bank of Korea has lowered its GDP growth forecast for 2025 from 1.5% to 0.8%.

Bank of Korea Governor Lee Chang-yong stated this week that U.S. trade actions remain a focus of monetary policy. Since the end of 2024, the Bank of Korea has cut interest rates four times, with the most recent reduction in May bringing the benchmark rate down to 2.5%.

In a speech at the former presidential office, Cheong Wa Dae, Lee Jae-myung pledged to revitalize the sluggish economy, improve living standards, and outlined plans to promote growth and stabilize the real estate market. "Alleviating the suffering of the people and achieving significant growth will be our top priority," he stated, noting that his first action after taking office was to establish an emergency economic task force.

The rebound in housing prices in some areas of Seoul may again make homeownership unaffordable for many, while potentially exacerbating household debt and bubble risks, leading to instability in the financial system. "We will stabilize the real estate market while respecting market principles and protecting consumers," Lee Jae-myung stated that there are various tools available to achieve this goal.

Regarding inter-Korean relations, Lee indicated that humanitarian aid from Seoul will help improve the lives of North Korean citizens. He noted that North Korea's response to stopping border propaganda broadcasts exceeded expectations. Concerning Japan, Lee reiterated that the two countries are inseparable but acknowledged that there are still thorny issues such as Dokdo (known as Takeshima in Japan) "When fighting with the right hand, we hold hands with the left. Therefore, I believe a flexible and reasonable approach is needed," Lee Jae-myung expressed his hope to visit Japan as soon as possible, but the schedule cannot be confirmed due to the Japanese elections. Lee Jae-myung was elected on June 4 after the impeachment of the conservative former president Yoon Suk-yeol, bringing new optimism to South Korea after six months of political turmoil.

This liberal leader took office with the highest initial approval rating in recent years. Consumer confidence soared to a four-year high, and the benchmark KOSPI index has risen about 25% since Yoon Suk-yeol stepped down in early April, making it one of the best-performing stock markets globally.

The rise in South Korean assets reflects market expectations that Lee Jae-myung's pro-business policies will usher in a period of reform. On Thursday afternoon, the National Assembly passed an amendment to the Commercial Law to better protect the rights of minority shareholders and improve corporate governance standards.

Lee Jae-myung stated that the stock market's rise reflects the restoration of public trust and reiterated the government's ambition to promote the "KOSPI 5000 era."