In brief
President Trump meets South Korean President Lee Jae Myung amid ongoing trade negotiations. Unlike his recent success in securing $490 billion in investments from Japan, talks in South Korea stall over Trump's request for a $350 billion investment, which officials argue could destabilize their economy. Observers note this disparity might overshadow the important meeting and future U.S.-Korea relations.
GYEONGJU, South Korea (AP) — Following a successful visit to Japan that yielded $490 billion in investment commitments, President Donald Trump is set to meet South Korean leader Lee Jae Myung on Wednesday. However, securing a trade deal with South Korea proves to be more complicated.Officials from Washington and Seoul indicate that the primary obstacle remains Trump's demand for a $350 billion investment in the U.S. Korean authorities express concern over a direct cash investment, arguing it could destabilize their economy, preferring a framework involving loans and guarantees instead. Additionally, they are seeking a swap line to manage currency flow into the U.S.The significant gap between Trump's expectations and what South Korea can economically sustain threatens to overshadow the Trump-Lee summit in Gyeongju, the host city for the annual Asia-Pacific Economic Cooperation summit.Oh Hyunjoo, a deputy national security director from South Korea, noted that negotiations are progressing slower than anticipated, with unresolved issues regarding investment structures and profit distributions.Unlike the fruitful interactions Trump experienced in Japan, where investment commitments have been actively honored, Trump’s approach in South Korea has met resistance. U.S. Treasury Secretary Scott Bessent acknowledged that many details are still pending, although he suggested that a deal is close.Currently, South Korea faces a 25% tariff on its automobiles, putting companies like Hyundai and Kia at a considerable disadvantage against their Japanese and European competitors, who benefit from lower tariffs of 15%.In his previous meeting with President Lee at the White House in August, Trump was met with flattery and collaboration. However, points of tension have arisen since then, including a recent U.S. immigration raid on a Hyundai plant in Georgia, where over 300 Korean workers were detained, stirring anger and disappointment.The situation has led Lee to express doubts about future investments without improvements to the visa system for South Korean workers in the U.S. He indicated that such challenges might deter companies from establishing local factories in America.Despite these tensions, Trump is also expected to meet with Chinese leader Xi Jinping later in the week, amid hopes of easing trade disputes. Additionally, Trump has hinted at the possibility of extending his trip should an opportunity arise to meet with North Korean leader Kim Jong Un, stating, 'If he wants to meet, I’ll be in South Korea.'
