Gyeongju, South Korea — Hopes for a grand trade agreement breakthrough between South Korea and the United States at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju have dimmed considerably, as major disagreements persist over the details of a $350 billion South Korean investment package to the US.
President Lee Jae-myung made it clear that a comprehensive tariff deal announcement at the scheduled bilateral summit with US President Donald Trump remains unlikely. In an interview with Bloomberg News released on October 27, President Lee stated, "The investment method, the investment amount, the timeline, the distribution of losses, and the profit-sharing method are all points of contention."
While confirming that discussions are ongoing and acknowledging "slight differences of opinion," President Lee offered a reassuring note: "A delay does not necessarily mean failure." He emphasized that a "comprehensive agreement has already been reached, and we are currently refining the details. Therefore, I ask for patience."
The President adopted a firm stance on the negotiations, asserting, "Of course, the US will try to maximize its own interests, but it should not be to the extent of causing catastrophic results for Korea." He stressed that as an ally and friend of the US, "we believe we can reach a reasonable outcome that is acceptable to everyone. It must be so." This follows a prior written interview with a Singaporean media outlet where he insisted, "We will not negotiate with an artificial deadline."
The main stumbling block remains the composition and implementation plan of the massive $350 billion investment package, leaving the possibility of a trade agreement announcement during the bilateral summit on October 29 highly uncertain.
Adding to the uncertainty, US Treasury Secretary Scott Bessent was reported by The New York Times to have stated that the US might not conclude the trade negotiations with South Korea during President Trump's visit. While calling it a "very complex negotiation," he expressed cautious optimism, telling reporters, "I think we are very close."
Security Talks "Proceeding Smoothly" Amid Trade Friction
In contrast to the stalled trade talks, President Lee described the ongoing security negotiations with the US as "proceeding very smoothly." He explained that the US is not publicly demanding increases in defense spending or host-nation support because South Korea is already taking proactive steps.
"The issue of defense cost burden is one that we have decided to undertake ourselves for the sake of self-reliant defense, even without a US request, and we are actually in the process of implementing it," he said.
Concerns Over Chinese Sanctions and Negotiation Strategy
President Lee also addressed China's recent sanctions on five US subsidiaries of Hanwha Ocean, expressing strong disapproval. "From South Korea's perspective, it is very regrettable and difficult to understand that South Korean subsidiaries in the US are being sanctioned by China simply for cooperating with the US," he stated. He suggested this is likely a signal that similar pressure tactics from China could continue.
Meanwhile, Oh Hyun-joo, the Third Deputy Director of the National Security Office, echoed the President's skepticism regarding an imminent trade deal. At a press conference with foreign correspondents, Oh said, "Looking at the current progress of the tariff negotiations, I think it will be somewhat difficult to conclude it immediately during this [APEC bilateral summit]."
Oh clarified that the negotiations were not specifically timed for the APEC summit or the bilateral meeting. The negotiating team is working based on "commercial rationality" and what "benefits the Korean economy." When asked whether "no deal is better than a bad deal" was an option, Oh dismissed the notion of "no deal" being the government's official position, stating, "The negotiating team is striving for a conclusion until the very end."
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