President Donald Trump declared a trade deal with South Korea "pretty much finalized" following a 90-minute meeting with President Lee Jae Myung on the sidelines of the Asia-Pacific Economic Cooperation summit in Gyeongju.
The discussions addressed a $350 billion investment commitment from Seoul, aimed at bolstering the U.S. economy amid ongoing negotiations to avert higher tariffs.
Both leaders highlighted progress on key issues, including investment structures and tariff reductions, though no formal agreement has been signed.
The talks marked the final stop of Trump's recent Asia tour, which included visits to Japan and Malaysia.
South Korean officials detailed a framework for the investments, with $200 billion in cash disbursements planned in annual installments not exceeding $20 billion to minimize market disruptions.
The remaining $150 billion would target the U.S. shipbuilding sector, a priority for the Trump administration.
In return, the U.S. agreed to apply a uniform 15 percent tariff rate to South Korean automobiles and auto parts, down from the previous 25 percent levy that disadvantaged exporters like Hyundai and Kia.
Additional concessions include most-favored-nation tariff treatment for pharmaceuticals, timber, and lumber products, along with exemptions for airplane parts, generic drugs, and certain natural resources.
Kim Yong-beom, Lee's chief of staff for policy, emphasized that the reciprocal tariffs would remain at 15 percent as established in August.
Despite the advancements, Oh Hyunjoo, a deputy national security director, noted earlier that negotiations had proceeded more slowly than anticipated, particularly on investment formats and profit distribution.
The White House has not yet confirmed the specifics or issued a joint statement, indicating potential final tweaks.
The summit featured elaborate ceremonies underscoring Seoul's diplomatic overtures, including a special lunch with U.S.-raised beef and a gold-adorned brownie.
A band performed Trump's campaign anthem "YMCA" upon his arrival, while a choreographed flag display accompanied his red-carpet walk.
President Lee presented Trump with the Grand Order of Mugunghwa, South Korea's highest civilian honor — a gold medal — and a replica of an ancient Silla Kingdom crown.
Trump praised the medal, stating, “It’s as beautiful as it can possibly be,” and expressed a desire to wear it immediately.
During their meeting, Trump remarked on the spectacle: “That was some spectacle, and some beautiful scenes. It was so perfect, so flawlessly done.”
Lee echoed Trump's slogan, telling him, “You are indeed making America great again.”
The gestures come amid broader tensions, including a September U.S. immigration raid detaining over 300 South Koreans at a Hyundai plant in Georgia.
Trump addressed the incident, saying, “I was opposed to getting them out,” and advocated for visa improvements to facilitate skilled worker mobility.
Looking ahead, Trump is set to meet Chinese leader Xi Jinping on Thursday, signaling potential de-escalation in U.S.-China trade frictions, particularly on fentanyl-related tariffs.