In a carefully choreographed visit to South Korea, President Trump was awarded the country’s highest honour — the “Grand Order of Mugunghwa” — and met with Lee at a historic museum in Gyeongju. (Reuters) Though the setting was ceremonious, behind the scenes both countries acknowledged the core trade deal remains unresolved.
Treasury Secretary Scott Bessent warned that the U.S.–South Korea trade agreement is “very complicated” and that no final deal is expected during this visit. (Reuters)
Key Points of Contention
The U.S. is pressing South Korea for an upfront investment of US$350 billion as part of the deal, a demand that Seoul says could destabilise its economy and currency. (Politico)
South Korean officials are resisting the idea of a one-time payment, instead advocating spreading the investment over time and including flexible terms. (Politico)
Immigration and skilled-worker visa issues have added friction: a U.S. enforcement action at a Hyundai plant has rattled South Korean firms seeking clarity on U.S. visa access. (Politico)
Strategic Stakes
The deal has become a litmus test for both countries:
For the U.S., securing this deal fits into a broader agenda of reshaping trade relationships and securing investments under Trump’s “America First” banner.
For South Korea, the agreement is meant to guarantee market access and avert U.S. tariffs, but without sacrificing its macro-economic stability or ceding too much control to Washington. (Reuters)
The timing coincides with the APEC forum, where Trump’s early departure and prioritisation of the Korea visit over multilateral sessions sends a signal about his focus on bilateral deals. (Reuters)
