On Monday, a senior South Korean official said that Seoul will not agree to a package of trade deals with Washington before the June 3 presidential elections. He also noted the challenges in reaching an agreement even by early July.

Seoul's delegation in Washington announced that the countries had agreed last week to create a package of trade measures aimed at removing U.S. new tariffs, before a pause on reciprocal tariffs ends on July 8.

Analysts noted that it might be difficult for South Korea, which currently has an acting President in power, to commit to large energy projects and defense costs.

South Korea will hold an election in the short term on June 3, after the former president Yoon Suk Yeol has been ousted from office for his role in briefly imposing martial laws in December.

Park Sung Taek, Vice-Minister of Trade, Industry and Energy, said to reporters that it is "theoretically" impossible for the two nations to agree on a comprehensive package of trade by late May or early in June.

"We explained fully our political situation to U.S. during the latest talks." The U.S. also recognizes that Korea's unique political situation may be a constraining factor in negotiations.

The United States prioritized talks with its key trading partners, including Japan, Korea, and India. Washington is rushing to close a number of trade agreements before the deadline on July 8.

Park said, "We are all taking uncharted territories."

He said, "I think it will be difficult for the discussions to produce any fruit in the next 70-days despite the expectations of President Trump."

South Korea has asked for exemptions from tariffs, including those on steel and autos. It also offered to cooperate on issues such as shipbuilding and energy.

Park said that the United States must remove red tape in order to facilitate bilateral shipbuilding cooperation. He cited the Jones Act as an example, which requires that goods transported between U.S. port to be carried on ships built domestically, and crewed by U.S. personnel.

He said that South Korea is in discussions to send a delegation of working level to Alaska to assess the feasibility of a $44 Billion liquefied gas project, which Washington hopes to finance with investment from countries such as South Korea and Japan.

Park stated that South Korea plans to form six working groups to discuss three topics: tariff exemptions, non-tariffs, and economic security. Meetings will begin next week.

He said that the currency policy will be the fourth item on the agenda. The financial authorities from both countries will discuss it separately. (Reporting and editing by Ed Davies.)

(source: Reuters)