South Korea sees higher chance of US trade deal by Apec summit

SEOUL – South Korea has a higher chance of reaching a trade deal with the US by the time of the Asia-Pacific Economic Cooperation (Apec) summit in South Korea later in October, the country’s chief policy adviser said on Oct 19.

While the two sides have made concrete progress in most issues, they need to iron out a couple of remaining items, adviser Kim Yong-beom told reporters, after returning from a trip to Washington where he met US Commerce Secretary Howard Lutnick.

Both South Korean and US officials have recently expressed optimism about a breakthrough in their stalled trade talks as the countries’ leaders are expected to meet on the sidelines of the Apec summit in Gyeongju, South Korea, later in October.

On July 30, US President Donald Trump said the US agreed to reduce duties on imports of South Korean products

to 15 per cent

in return for Seoul investing US$350 billion (S$453.4 billion) in the US.

But US car tariffs are still in place as the countries remain at odds over the details of the investments.

While Mr Trump had said South Korea would pay “upfront”, South Korea has said the US$350 billion would mostly comprise loans and guarantees, with limited direct investment, given the major impact on the foreign exchange market.

Mr Kim said the two sides are narrowing differences, saying Washington understands Seoul’s concerns about the foreign exchange implications.

US Treasury Secretary Scott Bessent said on Oct 15 the countries were close to finalising a trade deal and he expected an announcement in the next 10 days.

On Oct 18, Mr Trump had a golf outing with business leaders from South Korea, Taiwan and Japan at his private Mar-a-Lago estate at the invitation of SoftBank Group founder Masayoshi Son, according to South Korean media reports.

The group included the heads of South Korea’s top conglomerates, such as Samsung, SK and Hyundai Motor, the reports said. REUTERS