South Korea and U.S. to hold summit on security and economy

The South Korean and American flags fly next to each other at Yongin, South Korea, 23 August, 2016.
Reuters

South Korean President Lee Jae Myung and U.S. President Donald Trump will hold their first summit on 25 August in Washington to discuss ways to deepen their alliance and expand cooperation in economic security, according to Lee’s office.

Elected in June’s snap election, Lee has prioritized steering his export-dependent economy through shifts in the global trade environment driven by Trump’s tariff policies.

Presidential spokesperson Kang Yu-jung said the leaders will explore transforming the U.S.–South Korea alliance into a 'comprehensive strategic alliance of the future' in response to evolving global security and economic conditions.

The summit is expected to focus on advancing cooperation in manufacturing sectors such as semiconductors, batteries, shipbuilding, as well as in critical minerals and technology.

The meeting follows a tariff deal reached in July, which reduced Trump’s planned duties on South Korean goods to 15%.

In return, Trump has claimed that Seoul will unveil $350 billion in investments during the summit, though South Korean officials have offered differing accounts.

Unresolved issues, including non-tariff barriers and currency matters, could still spark disputes.

Defence costs are also likely to be on the table. Trump has long argued that South Korea should pay more toward the stationing of around 28,500 American troops in the country, a legacy of the Korean War.

Reports suggest Washington may push Seoul to boost defence spending from 2.6% to 3.8% of GDP and increase its annual contribution to U.S. troop costs.

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