South Korea, US near major trade deal ahead of APEC summit

SEOUL: South Korea and the United States are inching closer to finalising a long-awaited trade agreement, with a breakthrough possibly coming just in time for the upcoming Asia-Pacific Economic Cooperation (APEC) summit later this month.

Speaking to reporters on Sunday (Oct 19), South Korea’s chief policy advisor Kim Yong-beom sounded optimistic after returning from Washington, where he met with US Commerce Secretary Howard Lutnick. According to Kim, the two sides made “significant progress.” It appears that most issues have been resolved, and the parties are now down to ironing out a couple of key remaining points.

All eyes are now on the APEC summit, set to take place in Gyeongju, South Korea. The event could serve as the perfect stage to finalise the deal.

Momentum has been building in recent weeks. Back on Jul 30, Trump announced that the US had agreed to lower tariffs on South Korean imports to 15%. That concession is tied to a proposed US$350 billion (S$476 billion) investment from South Korea into the US economy.

While Trump is pushing for a large, upfront cash infusion, South Korea is offering a mix of loans, guarantees, and some direct investment. Their reasoning? Concerns about potential volatility in the foreign exchange markets.

Kim said the US has shown a growing understanding of South Korea’s position on that front.

Adding to the forward momentum, US Treasury Secretary Scott Bessent recently said that both countries are “close to finalising a deal” and that an announcement could come within the next 10 days.

Meanwhile, behind-the-scenes diplomacy is also in full swing. Over the weekend, Trump hosted a private golf outing at his Mar-a-Lago estate in Florida with major business leaders from South Korea, Japan, and Taiwan. The informal gathering—set up by SoftBank founder Masayoshi Son—included top executives from Samsung, SK Group, and Hyundai Motor, highlighting the high stakes for Asia’s biggest companies.

With the APEC summit fast approaching, both Washington and Seoul seem eager to lock in a deal that could reshape economic ties in the region—offering a potential roadmap for deeper cooperation at a time of rising competition across the Asia-Pacific.