Korea and U.S. near trade pact as negotiators narrow differences

Korea and the United States are close to sealing a trade pact, with this week expected to mark a watershed moment for the high-stakes deal ahead of the APEC summit.

President Lee Jae Myung, center, holds a meeting with the heads of major business conglomerates at the presidential office in Seoul on Aug. 19. [YONHAP]

Korean and U.S. officials have signaled that the two sides are close to sealing a trade pact, with this week expected to mark a watershed moment for the high-stakes deal ahead of the APEC Economic Leaders' Meeting.

“We are about to finish up with Korea,” U.S. Treasury Secretary Scott Bessent told CNBC on Wednesday. “The devil’s in the details, but we are ironing them out.”

The presidential office echoed the optimism, saying the two sides were “in the process of narrowing their differences on key issues,” as senior officials — including Finance Minister Koo Yoon-cheol, Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo — visited Washington on the sidelines of the annual meetings of the International Monetary Fund and World Bank.

The tariff negotiations have stalled in recent weeks over the structure of a $350 billion investment package that Seoul pledged in exchange for lower U.S. tariffs. The two governments remain divided on whether the funds will be delivered in cash or in guarantees, whether Washington will offer an unlimited currency-swap line, and how profits from the investment will be shared.

Meanwhile, the heads of Korea’s largest conglomerates are set to gather at Mar-a-Lago in Palm Beach, Florida, for an investment meeting attended by President Donald Trump, according to local media reports. Observers say the gathering could help break the impasse over investment commitments.

Samsung Electronics Chairman Lee Jae-yong, Hyundai Motor Group Executive Chair Euisun Chung, SK Group Chairman Chey Tae-won and LG Group Chairman Koo Kwang-mo are expected to attend the event, reportedly hosted by SoftBank Group Chairman Masayoshi Son. The meeting will discuss cooperation on a large-scale AI infrastructure project.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]