President Lee Jae Myung stated in a Bloomberg interview that South Korea and the United States remain deadlocked on key details of Seoul's $350 billion investment pledge. Negotiations continue on implementing the July trade agreement, with issues including investment methods, amounts, and timelines. He anticipates a rational outcome ahead of talks with President Trump at the APEC summit.
President Lee Jae Myung stated in a Bloomberg interview on Friday, October 25, that South Korea and the United States remain deadlocked on key details of implementing Seoul's $350 billion investment package under the July trade agreement framework. "The method of investment, the amount of investment, the timeline and how we will share the losses and divide the dividends—all of these remain sticking points," Lee said. He added, "The U.S. will of course try to maximize its interests, but it mustn't be to the extent that causes catastrophic consequences for South Korea."
National Security Adviser Wi Sung-lac explained in a KBS interview on October 26 that an agreement on security and alliance issues is prepared on paper, but trade deal negotiations are ongoing. The July deal involves South Korea's investment package in exchange for the U.S. lowering tariffs on South Korea from 25% to 15%. Wi said, "We have most of the paperwork ready for the security components. We are not sure if we can finalize the tariff part yet, but we are working on it." Sticking points include the proportion of direct investment, timeline for delivery, and method for distributing returns.
Lee emphasized that discussions are ongoing with some differences of opinion, but the delay does not mean failure, and he believes they can reach a "rational result." These remarks come ahead of his talks with U.S. President Donald Trump on Wednesday, October 29, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju. Trump told reporters aboard Air Force One on October 25 that a trade deal with South Korea is "pretty close to being finalized," adding that he is "ready" if Seoul is ready.
Regarding the detention and release of South Korean workers in a U.S. immigration raid at a Hyundai plant in Georgia last month, Lee expects a solution "in the not-too-distant future" through visa system revisions. He warned, "Without taking measures to ensure the safety and rational treatment of these workers, there is a high possibility that factory construction in the U.S. may be significantly postponed." Meanwhile, Wi indicated that the security deal includes South Korea's plan to increase defense spending and readjust the role of U.S. troops in Korea, using it as leverage to revise the bilateral nuclear energy pact, known as the 123 Agreement. Last revised in 2015, it bans South Korea from spent fuel reprocessing and uranium enrichment without U.S. consent. Wi said they have received a positive response to easing these restrictions given South Korea's capabilities.