by supplychainreport
South Korea is likely to reach a trade agreement with the United States by the Asia-Pacific Economic Cooperation (APEC) summit later this month, the country’s chief policy advisor said Sunday.
Advisor Kim Yong-beom, speaking after returning from Washington where he met with U.S. Commerce Secretary Howard Lutnick, said that while substantial progress has been made on most issues, a few details still need to be resolved. Both South Korean and U.S. officials have expressed optimism about a potential breakthrough in stalled trade negotiations, with leaders expected to meet on the sidelines of the APEC summit in Gyeongju, South Korea.
In July, U.S. President Donald Trump announced that the U.S. would reduce duties on South Korean imports to 15% in exchange for Seoul investing $350 billion in the U.S. However, U.S. auto tariffs remain, as differences persist regarding the structure of the investments. South Korea has indicated that the $350 billion would primarily take the form of loans and guarantees, rather than upfront direct investment, to minimize foreign exchange market impact.
Kim noted that both sides are narrowing differences, with Washington reportedly understanding Seoul’s concerns about foreign exchange implications. U.S. Treasury Secretary Scott Bessent also stated that the two countries are close to finalizing a trade deal, with an announcement expected within the next 10 days.
Over the weekend, President Trump hosted a golf outing at his Mar-a-Lago estate with business leaders from South Korea, Taiwan, and Japan. South Korean conglomerates represented included Samsung, SK, and Hyundai Motor, according to local media reports.
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