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Seoul denies report that Lutnick conveyed US distrust of spy agency in investment talks

🇰🇷 South Korea, Seoul 06:38 International Business6 Official updated 3 d ago first reported by 연합뉴스

In short

Dong-A Ilbo reported, citing several senior government sources, that US Commerce Secretary Howard Lutnick conveyed the Trump administration's concerns about South Korea's National Intelligence Service (NIS) to Minister of Trade and Industry Kim Jung-kwan (김정관) during talks on a $200 billion US strategic investment package. On October 9 the trade ministry said the report was not true, and the NIS said it had received no information about any such Lutnick remarks from other ministries or agencies.

Read the full story 2 min read

South Korea's Ministry of Trade and Industry and the National Intelligence Service (NIS) on October 9 denied a Dong-A Ilbo report that US Commerce Secretary Howard Lutnick had conveyed the Trump administration's distrust of the NIS to Minister of Trade and Industry Kim Jung-kwan (김정관). In an explanatory release, the ministry said it was 'not true' that Lutnick had conveyed distrust regarding the NIS to Kim during the strategic investment negotiations. The NIS said it had received no information about Lutnick's remarks from any other ministry or agency. [ 1 , 3 , 4 , 5 ]

Dong-A Ilbo, citing several senior government sources on October 8, reported that Lutnick raised the concerns during recent talks on a $200 billion (about 267 trillion won) US strategic investment package, telling Kim in effect: 'Why is Korea's NIS like that?' The paper said the US concerns were also reported to Cheong Wa Dae, and that Kim did not answer its questions about the remarks. [ 1 , 5 ]

According to Dong-A Ilbo, the Trump administration has concerns about the NIS's activities related to China. A US source told the paper there is a perception within the administration that the NIS may be acting 'pro-China' and that intelligence security had been a problem several times. Dong-A Ilbo said some in the government suspected the issue was being used as a bargaining card in talks that included the Alaska LNG development project, while another senior source said Lutnick did not intend it as leverage. The paper also reported that the government is considering steps to improve relations, including visits to the US by senior foreign and security officials. [ 1 ]

The NIS said intelligence cooperation between South Korea and the US is active in areas including North Korea, cyber, technology leaks and transnational crime. It also denied reports of an argument between NIS Director Lee Jong-seok (이종석) and Foreign Minister Cho Hyun (조현) at a National Security Council standing committee meeting in August. [ 3 , 4 , 5 ]

The report follows the disclosure that the NIS was excluded at US request from a South Korea-US-Japan working group meeting on North Korean cyber threats held in the United States in June. On that exclusion, the NIS said, according to Dong-A Ilbo, that 'misunderstandings sometimes arise from differences in national interests', that some misunderstanding months ago was already in the past, and that the two sides are now cooperating closely. Yonhap noted that US restrictions on sharing intelligence about North Korea, triggered in March by Unification Minister Chung Dong-young's (정동영) remark about a uranium enrichment facility in Kusong, North Korea, have lasted more than six months. [ 1 , 3 ]

Why it matters

Dong-A Ilbo framed the report as a sign that US dissatisfaction with the NIS was spilling over from security matters into trade and other bilateral issues. Yonhap noted it comes as friction between the two countries' intelligence services has come back to the fore, after the NIS was excluded at US request from a trilateral meeting on North Korean cyber threats and while US limits on sharing intelligence about North Korea continue.

Key facts

  • Dong-A Ilbo reported that Howard Lutnick conveyed the Trump administration's concerns about the NIS to Kim Jung-kwan during negotiations on a $200 billion US strategic investment package. [ 1 , 3 , 4 , 5 ]
  • The Ministry of Trade and Industry said in an explanatory release on October 9 that the report was not true. [ 1 , 3 , 4 , 5 ]
  • The NIS said it had received no information about Lutnick's remarks from other ministries or agencies. [ 3 , 4 , 5 ]
  • The NIS said South Korea-US intelligence cooperation is active in areas including North Korea, cyber, technology leaks and transnational crime. [ 3 , 4 , 5 ]
  • The NIS also denied reports of an argument between NIS Director Lee Jong-seok and Foreign Minister Cho Hyun at a National Security Council standing committee meeting in August. [ 3 , 4 , 5 ]
  • The NIS was excluded at US request from a trilateral South Korea-US-Japan meeting on North Korean cyber threats held in June. [ 1 , 3 ]

Confirmed by several sources

  • The Ministry of Trade and Industry denied that Lutnick conveyed distrust of the NIS to Kim Jung-kwan during the strategic investment talks. [ 1 , 3 , 4 , 5 ]
  • The NIS denied receiving any information about Lutnick's remarks from other ministries or agencies. [ 3 , 4 , 5 ]
  • The NIS denied that Lee Jong-seok and Cho Hyun argued at a National Security Council standing committee meeting in August. [ 3 , 4 , 5 ]
  • The NIS was left out of a June trilateral meeting on North Korean cyber threats at the request of the United States. [ 1 , 3 ]

Still unclear

  • Whether Lutnick conveyed US concerns about the NIS to Kim Jung-kwan. Dong-A Ilbo reported it citing several senior government sources; the trade ministry says it is not true.
  • Whether the NIS issue was used as leverage in the investment talks. Dong-A Ilbo said some in the government saw it that way, but another senior source told the paper Lutnick did not intend it as leverage.
  • The US administration's concerns about NIS activities related to China. Reported only by Dong-A Ilbo, citing government sources and a US source.
  • Whether the government will send senior foreign and security officials to the US to improve relations. Dong-A Ilbo reported only that the government is reviewing such steps.

What local media are saying

Business mediaDong-A Ilbo ran the exclusive report, presenting US distrust of the NIS as spreading from security into trade issues and noting reported US concerns about the agency's China activities; Kyunghyang Shinmun and Newsis led with the government's denials. [ 1 , 4 , 5 ]
Official sourcesYonhap reported the denials by the trade ministry and the NIS, and placed them in the context of the NIS's exclusion from the June cyber meeting and the continuing US limits on intelligence sharing about North Korea. [ 3 ]

Timeline, local time

  1. Dong-A Ilbo publishes its exclusive report that Lutnick conveyed US distrust of the NIS to Kim Jung-kwan. [ 1 ]
  2. Yonhap reports that the trade ministry and the NIS have denied the report. [ 3 ]
  3. Kyunghyang Shinmun reports the denials by the NIS and the trade ministry. [ 4 ]
  4. Newsis reports the government's denial. [ 5 ]