October 28, 2025
SEOUL – South Korea and the US are unlikely to finalize a tariff deal at Wednesday’s summit between President Lee Jae Myung and President Donald Trump, the Korean presidential office said Monday.
“Looking at how the talks unfold, it seems unlikely that the deal can be finalized immediately at this moment,” said Oh Hyun-joo, third deputy director of national security at the presidential office, during a press conference with the foreign correspondents’ club in Seoul.
Her comments were in response to Trump’s remark on Friday before embarking on his weeklong Asia trip that the South Korea-US trade deal is “pretty close” to being finalized.
This effectively clouded the prospect that the trade deal negotiations — to reduce US “reciprocal” tariffs on South Korean goods and automobiles in exchange for South Korea’s $350 billion investment commitment to US projects — could be finalized during the week of Asia-Pacific Economic Cooperation events in South Korea.
The Lee administration “was not pursuing a finalization of the deal before the summit (between Lee and Trump) on the occasion of the APEC conferences,” Oh also said, adding that the two sides “do not appear to be at odds with each other” when it comes to the security pillar of the US deal that revolves around a modernization of the bilateral alliance and defense cost-sharing.
This followed Lee’s interview with Bloomberg, released Monday, in which the president said the trade rift between Seoul and Washington is unlikely to be mended immediately as a wider range of details “remain sticking points,” including how to structure the investment, how much would be invested, the timeline and ways to share the resulting profits or losses.
Lee also reiterated his view that the US was pushing for its demands, which are far from acceptable from South Korea’s standpoint.
Lee said the US push to maximize its interests “must not be to the extent that causes catastrophic consequences for South Korea,” adding that he believed both countries “will be able to reach a rational result that is acceptable to all sides.” Regarding the trade deal with South Korea, Trump said on Friday that “if they have it ready, I’m ready.”
Seoul and Washington tentatively reached a trade agreement on July 31, with Seoul agreeing to invest $350 billion in the US and have tariff rates significantly reduced for South Korean goods entering the US.
The difference in views over how to structure the $350 billion investment package has not been narrowed, as Washington has demanded an “upfront” cash payment while South Korea sought a mixture of loans and guarantees on the basis that if $350 billion were to be paid in cash, South Korea would be plunged into a financial crisis.
Lee’s aides and ministers’ last-ditch attempts on this point of contention bore little fruit. Kim Yong-beom, chief presidential secretary for national policy, said Friday upon his return to Seoul after the most recent meeting with US officials that there were “remaining issues” between the two countries over tariffs, but did not elaborate.
Regarding mounting speculation about a possible surprise meeting between Trump and North Korean leader Kim Jong-un, Oh said during Monday’s press conference that there is a “very low chance” that it will happen on the occasion of Trump’s South Korea visit later this week. However, she did mention that a meeting between Trump and Kim would be “the start of everything.”
Oh added that South Korea would be capable of arranging the talks depending on the circumstances.
“In the last meeting of the US and North Korean leaders in 2019, it took only 30 hours to prepare,” Oh said, referring to the three-way meeting involving Trump, Kim and former South Korean President Moon Jae-in at the Demilitarized Zone on the border of the two Koreas.
“If such circumstances arise, we have the capacity to internally prepare for the meeting if a similar length of time is given for preparation,” Oh said, but added that this would not mean that the South Korean president must be involved in the meeting.
Later on Monday, Trump said while en route from Malaysia to Japan that he “would love to meet with (Kim) if he’d like to meet.” This follows his remarks before embarking on the Asia tour on Friday that he was “open to” meeting Kim.
