With the Asia‑Pacific Economic Cooperation (APEC) summit just a week away, every eye is on Seoul and Washington to see whether South Korea and the United States can finalize a new tariff deal. The two nations are pushing hard to close their trade talks before the two‑day APEC event in Gyeongju, southeastern Korea, scheduled to begin next Friday.
The summit will also host a top‑level meeting between South Korean President Lee Jae Myung and U.S. President Donald Trump—a rare chance to wrap up a big trade agreement that could shape Korea’s export‑heavy economy.
South Korean officials last week flew to Washington to take the negotiations one step further. President Lee’s chief of staff for policy, Kim Yong‑beom, and Industry Minister Kim Jung‑kwan met with U.S. Commerce Secretary Howard Lutnick in the capital less than a week after returning home. Their latest trip may be the last high‑level face‑to‑face talk before the APEC summit.
The two sides have been working to resolve the details of Seoul’s $350 billion investment pledge to the U.S. This includes how the money will be financed and how profits will be shared. In a July framework agreement, the U.S. agreed to cut Korea’s export tariffs from 25 % to 15 % in return for the investment and increased cooperation in shipbuilding, semiconductors, batteries and other advanced industries. The U.S. also agreed to lower the tariff on Korean cars from 25 % to 15 %.
Trump has said that the investment should come “upfront,” but Seoul officials argue that the pledge is meant to fund projects, not a single cash payment. They have asked for financial safeguards, such as a currency‑swap arrangement, to protect Korea’s foreign‑exchange reserves.
The chief of staff said earlier this week that the two sides are “quite” near the end of the trade talks, noting “substantial” progress on most issues. However, the biggest hurdle remains how much of the $350 billion will happen at once and when. Seoul has suggested spreading the investment over ten years to ease pressure on its FX reserves—Korea can use up to $20 billion from these reserves in a single year.
In short, the APEC summit could be the turning point for a trade deal that might lower tariffs, boost Korean exports, and secure a $350 billion financial partnership between Seoul and Washington. The world will be watching to see if Seoul and Trump seal the deal before Friday’s Gyeongju summit.
Source: ianslive
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