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South Korean Foreign Minister Cho Hyun confirmed that Seoul and Washington have reached a broad understanding on security issues while trade and tariff negotiations remain ongoing, according to Yonhap News Agency. The talks come as the United States reviews a potential currency swap deal, a key demand from South Korea, though prospects for approval appear uncertain.
The United States had earlier agreed to lower tariffs on imports from South Korea in exchange for a $350 billion investment package. However, follow-up discussions on structuring the deal have stalled, delaying progress. Cho noted that Seoul may take longer than Japan— which finalized its investment agreement last month— to conclude its trade deal with Washington.
As part of the broader negotiations, Seoul and Washington are also working on a parallel security agreement. This includes discussions over South Korea’s increased defense spending, a move strongly pushed by U.S. President Donald Trump, who has repeatedly called on Seoul to contribute more toward the cost of hosting American troops. Cho emphasized that both sides are aiming to finalize and announce the security pact ahead of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea, later in October. Trump is expected to attend the meeting.
Meanwhile, South Korean President Lee Jae Myung announced an 8.2% increase in next year’s defense budget, underlining the need for stronger self-reliance in national security. Officials also revealed that progress is being made on negotiations granting South Korea greater rights to process nuclear fuel for industrial purposes— a provision currently restricted under existing agreements.
Cho also suggested that a potential meeting between President Trump and North Korean leader Kim Jong Un remains possible, following media speculation. Kim recently stated he was open to dialogue if Washington eased its stance on denuclearization demands.
These developments highlight the intertwined nature of trade, security, and regional diplomacy, as Seoul balances its economic interests with long-term defense and geopolitical challenges.
