The meeting between US President Donald Trump and South Korean President Lee Jae-myung has ended without any breakthrough on a long-anticipated trade deal, despite renewed diplomatic efforts during Trump’s week-long tour of Asia.
The leaders met in Gyeongju on Wednesday in what was expected to advance negotiations on a $350 billion investment package that would shield South Korea from heavy US tariffs.
The two-hour private meeting, however, failed to produce a final agreement, leaving both sides at an impasse.
The trade talks have been deadlocked since July, when an initial deal was announced under which Seoul would inject billions into the US economy and purchase $100 billion worth of liquefied natural gas.
The White House later raised its demands, pushing for larger cash investments instead of infrastructure or technology-based projects.
Before the talks, President Trump received a lavish welcome that included a military honour guard, a golden crown, and South Korea’s highest national decoration—the Grand Order of Mugunghwa—awarded in recognition of his “contribution to peace on the Korean Peninsula.” Trump joked that he would like to wear the crown immediately, as both leaders proceeded to a working lunch and private discussions.
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Despite the ceremonial gestures, neither government released details of any tangible progress. South Korean industries, especially in electronics and automotive manufacturing, had been hoping for clarity on tariff relief, but officials on both sides cautioned against expecting a breakthrough.
Earlier this year, Seoul managed to negotiate a tariff reduction from 25% to 15%, but new disputes over investment structures have reignited tensions.
Trump’s visit comes amid heightened security challenges in the region. North Korea fired surface-to-air missiles days before his arrival, underscoring the fragile peace between the two Koreas.
Trump expressed interest in meeting North Korean leader Kim Jong Un during the trip but said scheduling conflicts prevented it.
Outside the summit venue, small groups of protesters clashed with police—some denouncing Trump’s policies while others rallied in his support, voicing anti-China sentiments that have grown more pronounced in South Korea.
As Trump continues his Asia tour, he is set to meet Chinese President Xi Jinping in Busan on Thursday on the sidelines of the Asia-Pacific Economic Cooperation summit.
The two leaders are expected to discuss global trade and tariff reforms, which Trump described as vital to “economic security.”
“Economic security is national security,” Trump told CEOs in Gyeongju. “That’s true for South Korea and every nation that wants a fair global system.”
BBC
