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Korea, U.S. still apart on trade deal specifics as bilateral summit nears

Published: 25 Oct. 2025, 11:02 Updated: 25 Oct. 2025, 11:04

Kim Yong-beom, Korea's presidential policy director, speaks with reporters after a round of trade negotiations with U.S. Commerce Secretary Howard Lutnick in Washington on Oct. 22. [KANG TAE-HWA]

A senior official from the Trump administration said Friday that they hope Korea will accept U.S. demands in order to reach a swift conclusion to ongoing trade negotiations between the two countries.

During a press briefing ahead of U.S. President Donald Trump’s upcoming trip to Asia, the official was asked whether a trade agreement with Korea would be finalized during Trump’s visit to the country this week.

The official said the United States is eager to conclude a deal as quickly as possible, noting their hope that Korea would accept the terms that Washington considers appropriate.

The remarks suggest that Washington acknowledges unresolved differences in the bilateral trade talks, particularly regarding Korea's investment package in the United States.

In July, Seoul and Washington reached a broad agreement for a trade deal that included a $350 billion investment by Korea. However, the two sides have struggled to narrow their differences over the composition and implementation of that package, raising doubts over whether the deal will be ready for announcement at the bilateral summit scheduled for Oct. 29.

During a Korean parliamentary audit on Friday, Industry Minister Kim Jung-kwan, who led the Korean delegation for the trade negotiations, confirmed that discussions are underway on a plan for Korea to invest $200 billion in cash over eight years — $25 billion annually — with the remaining $150 billion to be arranged through credit guarantees and other instruments. “The two sides are sharply divided over what constitutes an appropriate level of cash investment,” Kim said.

In addition, the U.S. official reaffirmed that Trump is seeking cooperation with Korea to help rebuild America’s shipbuilding industry. The official said Washington welcomes Korean capital, expertise and general cooperation in helping to restore American manufacturing, defense industries, shipbuilding and submarine construction.

Left: U.S. President Donald Trump; Right: Chinese President Xi Jinping [JOONGANG ILBO]

He added that Trump is expected to sign a series of economic agreements during his Asia trip, saying such deals would further reshape the global economic order, secure greater investment that would revitalize industries and create high-paying jobs in the United States. The official also noted that Trump plans to sign key mineral supply chain agreements — essential for building reliable industrial supply chains.

When asked whether Trump might meet North Korean leader Kim Jong-un on the Korean Peninsula during the trip, the official replied that Trump has expressed his willingness to meet Kim in the future, but that it is not part of his trip’s schedule. The official also said that schedules can be changed.

The official added that Trump will “host” a bilateral dialogue with Chinese President Xi Jinping in Busan on Thursday, Oct. 30. That bilateral talk — expected to cover trade and economic issues — with China is what Trump is most interested in, according to the U.S. official.

As for other potential topics such as Taiwan, the official made clear that the U.S. side has no intention of discussing other agendas. The remarks seemingly emphasized that trade, along with China’s purchases of Russian oil and its export controls on rare earth elements, will be the primary issues for the bilateral discussion.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
HYEON YE-SEUL [[email protected]]