Jeonju, South Korea – President Donald Trump wanted South Korea to invest $350 billion in the US economy. So far, he’s content with a gold medal and a crown.
Both were gifts from the country’s president, Lee Jae-myung, who spoke of the flattery as Washington and Seoul struggled to finalize details of financial promises during the final leg of Trump’s Asian trip.
There was a special lunch menu featuring US-raised beef and a cake decorated with gold. A band played Trump’s campaign anthem “YMCA” as he stepped off Air Force One. “You’re really making America great again,” Lee told him.
Trump may be mercurial and demanding, but he has a penchant for pomp and circumstance. He was particularly impressed by the display of colorful flags as he walked the red carpet.
“That was an amazing sight, a beautiful sight,” Trump told me during their meeting. “It was so perfect, it was done so flawlessly.”
Earlier in the day, Trump softened his tone on international trade, which he usually describes in predatory terms where someone is always trying to steal the United States.
“The best deals are deals that suit everyone,” he said during a business forum.
Washington and Seoul are working to reach a trade agreement
Trump’s visit came as South Korea hosts the annual Asia-Pacific Economic Cooperation Summit in the historic city of Jeonju. He has previously stopped in Japan, where he established a relationship with the new prime minister, and Malaysia, where he attended an Association of Southeast Asian Nations summit.
The Republican president is trying to tie up trade deals along the way, eager to show that his confrontational approach to tariffs is paying off for Americans who are uneasy about the labor market and watching the federal government shutdown extend into its fifth week.
However, South Korea has been a tough nut to crack, with the sticking point being Trump’s demand for $350 billion in direct investment in the United States.
Korean officials say providing cash could destabilize their economy, and prefer to offer loans and loan guarantees instead. The country would also need a swap line to manage the flow of its currency into the United States
“We have pretty much terminated our agreement,” Trump said after his meeting with Lee. He did not provide any details, and the White House did not immediately respond to a request for comment.
Oh Hyunjo, South Korea’s deputy national security director, told reporters earlier in the week that negotiations were going “a little slower” than expected.
“We have not yet been able to reach agreement on issues such as the structure and forms of investments and how to distribute profits,” she said on Monday.
This contrasts with Trump’s experience in Japan, where the government worked to deliver $550 billion in investments promised as part of a previous trade agreement. Commerce Secretary Howard Lutnick announced specific commitments worth up to $490 billion during a dinner with business leaders in Tokyo.
Currently, South Korea is committed to imposing a 25% tariff on cars, putting automakers like Hyundai and Kia at a disadvantage against Japanese and European competitors, which face 15%.
Lee, who was speaking at a business forum before Trump arrived, warned against trade barriers.
He added: “At a time when protectionism and nationalism are on the rise and countries are focused on their immediate survival, words such as cooperation, coexistence and inclusive growth may ring hollow.” “But ironically, it is in times of crisis like these that APEC’s role as a platform for solidarity shines most brightly.”
Trump and Lee exchange praise despite differences
Lee took office in June and had a warm meeting with Trump at the White House in August, when he praised the Oval Office renovations and suggested building a Trump Tower in North Korea.
He took a similar approach when he visited Trump on Wednesday. The gold medal presented to Trump represents the Grand Order of Mugunghwa, the country’s highest honor, and Trump is the first US president to receive it.
Trump said, “It’s as beautiful as can be” and “I would love to wear it right now.”
A replica of the royal crown from the Silla Kingdom, which existed from 57 BC to 935 AD, was later found. The original crown was found in a tomb in Jeonju, the kingdom’s capital.
Besides trade disputes, there have been other points of tension between Washington and Seoul this year. More than 300 South Koreans were arrested during a raid by US immigration forces on a Hyundai factory in Georgia in September, sparking feelings of anger and betrayal.
Lee said at the time that companies would likely hesitate to make future investments unless the visa system was improved.
“If this is not possible, setting up a domestic factory in the United States will either have severe disadvantages or become very difficult for our companies,” he said.
Asked Monday about the immigration raid, Trump said, “I was opposed to taking them out,” and said improving the visa system would make it easier for companies to bring in skilled workers.
Trump and Xi are expected to meet on Thursday
While in South Korea, Trump is also expected to hold a closely watched meeting on Thursday with Chinese President Xi Jinping. Washington and Beijing have clashed over trade, but both sides have indicated a desire to ease tensions.
Trump told reporters aboard Air Force One on Wednesday that he expects to reduce tariffs targeting China over the influx of fentanyl components.
“They will do what they can do,” he added. Trump added, “China will work with me.”
Trump seemed resigned to the idea that he would not be able to meet North Korean leader Kim Jong Un on this trip. The president had previously raised the possibility of extending his stay in South Korea, but said on Wednesday that “the timeline is very tight.”
North Korea has so far rejected Washington and Seoul’s overtures, saying it will not resume diplomacy with the United States unless Washington abandons its demand for North Korea’s denuclearization. North Korea announced Wednesday that it had fired sea-to-surface cruise missiles into its western waters, in the latest display of its growing military capabilities with Trump’s visit to South Korea.
Trump ignored the weapons test, saying: “He has been firing missiles for decades, right?”
The two leaders met during Trump’s first term, although their talks did not result in any agreements on North Korea’s nuclear program.
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