Trade deal issues continue as South Korea and the United States prepare for a high-stakes summit. Several unresolved topics have triggered growing political concern. Former negotiators warn of renewed tensions between the two countries.
President Trump may push for new concessions from South Korea. He plans to raise defense costs and investment terms. Those topics were not finalized in the recent trade deal announcement.
South Korean officials reject U.S. claims about profit-sharing on the $350 billion investment fund. They argue that profits should stay in the United States. Seoul insists both sides never discussed exact profit terms.
Meanwhile, the U.S. said South Korea opened its market to American rice. However, South Korean leaders deny any such agreement. They call these claims misleading and politically motivated.
Trade deal specifics remain unclear as working-level talks approach. South Korea wants protection through clauses on product purchases. Officials also want risk-reduction mechanisms for large-scale investments.
Commerce Secretary Howard Lutnick stated that 90% of profits will go to Americans. However, Seoul disputes this figure. Officials say the exact structure is still under review.
A large portion of the fund may support U.S. shipbuilding. Other sectors include chips, clean energy, and biotech. Most of the investment consists of loans and guarantees, not equity.
Currency policy has now entered the trade deal talks. Both sides will also discuss non-tariff issues like Big Tech regulation. These topics could lead to deeper friction.
Japan’s earlier deal with the U.S. pushed South Korea to act quickly. As a result, Seoul rushed into a narrower agreement. That decision left security and investment unresolved before the summit.
Trump is likely to renew pressure on South Korea to boost defense payments. This demand has strained ties in past talks. Political observers expect it to resurface during the summit.
Without a signed trade deal, misunderstandings remain likely. Analysts urge both governments to finalize written terms soon. Only a formal agreement can reduce future disputes.
The South Korea summit may set the tone for future U.S. relations in Asia. Both sides must balance domestic politics with global strategy. The outcome could reshape the alliance for years.
