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'All major details' of $350B U.S. investment pledge remain unresolved, president says

Published: 27 Oct. 2025, 08:50 Updated: 27 Oct. 2025, 19:33

Korean President Lee Jae Myung delivers his speech during a celebration to mark 77th Armed Forces Day in Gyeryong, South Chungcheong, on Oct. 1. [AP/YONHAP]

South Korea and the United States "remain stuck on all the major details related to a $350 billion investment pledge" between the two countries, according to President Lee Jae Myung.

“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 in an interview with Bloomberg published Monday. The interview also touched on Lee's China policy and defense issues.

"The United States will of course try to maximize its interests, but it mustn’t be to the extent that it causes catastrophic consequences for South Korea," Lee said. "The discussion is ongoing and there are some differences of opinion, but the delay does not necessarily mean that this is a failure."

Bloomberg reported that the investment pledge forms the core of a bilateral trade agreement between South Korea and the United States drafted in July. The delay in finalizing the deal has put Korean carmakers at a disadvantage compared to competitors, the outlet noted, adding that while South Korea’s automakers are currently subject to a 25 percent tariff in the United States, Japan secured a memorandum of understanding with Washington last month allowing for a 15 percent tariff.

Lee, however, dismissed comparisons with Japan and said that South Korea can still learn from the approach the European Union took in its negotiations with the Trump administration.

“Korea is an ally and friend of the United States, so we believe that we will be able to reach a rational result that is acceptable to all sides and this is what has to be done,” Lee said.

U.S. President Donald Trump speaks during the Asean-U.S. Summit in Kuala Lumpur, Malaysia, on Oct. 26. [AP/YONHAP]

He also commented on the crackdown by U.S. immigration authorities on workers at a battery plant under construction in Georgia for a joint venture between LG Energy Solution and Hyundai Motor, saying the incident had made public opinion in South Korea more cautious about investments in the United States. During the raid, more than 300 Korean workers were arrested and detained over alleged violations of visa regulations.

Lee said the two countries are negotiating revisions to the visa system and a solution is expected "in the not-too-distant future."

"This has also caused severe trauma for the workers as well, and I have heard that some workers do not want to go back," he said. "Without taking measures to ensure the safety and rational treatment of these workers, there is a high possibility that factory construction in the US may be significantly postponed."

On security issues, Lee said that ongoing talks to modernize the bilateral alliance with the United States have made visible progress and need to evolve beyond simply deterring North Korea.

Korean President Lee Jae Myung addresses the 80th session of the United Nations General Assembly in New York on Sept. 23. [AP/YONHAP]

Addressing a proposed increase in defense spending from 2.3 percent of the GDP to 3.5 percent, Lee said the decision is based on Korea’s principle of autonomous defense, not a demand from Washington. South Korea must be ready to bolster its deterrence against the North regardless of external factors, according to Lee.

“It is clear that U.S. Forces Korea [USFK] is critical in maintaining peace and security on the Korean Peninsula,” he said. “Yet, it is the reality of the international community that we cannot make decisions on the fate of USFK.”

Lee also addressed the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping — their first in six years — describing Korea’s geopolitical position as being “between two grinding stones.” He said the global order is moving toward “a very complicated and dangerous phase,” but added that he believes bilateral talks like the Trump-Xi summit can help foster mutual understanding and coexistence, and that it is Korea’s role as the host nation to help guide such outcomes.

The interview was conducted a day after Kim Yong-beom, policy chief of the presidential office, and Industry Minister Kim Jung-kwan met with U.S. Secretary of Commerce Howard Lutnick in the United States on Wednesday.

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.
BY SHIN HYE-YEON [[email protected]]