SEOUL: US President Donald Trump continues his trip throughout Asia on Wednesday where he’s set to meet with South Korean President Lee Jae Myung in Gyeongju, a historic city playing host to this year’s Asia-Pacific Economic Cooperation (APEC) summit.
After a charm offensive during Trump’s visit to Japan that culminated in $490 billion in investment commitments, a trade deal between the US and South Korea appears more elusive as Trump seeks $350 billion in investment in the US.
Top officials in Washington and Seoul say the sticking point for an agreement continues to be the logistics behind Trump’s demand that South Korea invest $350 billion in the United States.
Korean officials say putting up cash could destabilize their own economy, and they’d rather offer loans and loan guarantees instead. The country would also need a swap line to manage the flow of its currency into the US.
The disparity between what Trump is asking for and what South Korea can deliver threatens to overshadow the meeting between Trump and South Korean President Lee Jae Myung in Gyeongju, a historical city playing host to the annual APEC summit.
Trump said the two countries are “wedded,” praising their “very special relationship” during remarks at a business forum. He also said they're “very close” to a deal.
Speaking broadly about international trade, Trump suggested a more conciliatory approach than his usual confrontational stance. “The best deals are deals that work for everybody," he said.
Lee, speaking at the forum before Trump arrived, warned against trade barriers. “At a time when protectionism and nationalism are on the rise and nations focus on their immediate survival, words like ‘cooperation,’ ‘coexistence,’ and ‘inclusive growth’ may sound hollow," he said.
"Yet, paradoxically, it is in times of crisis like this that APEC’s role as a platform for solidarity shines brighter.”
Trump’s visit comes as North Korea said Wednesday it fired sea-to-surface cruise missiles into its western waters, in another display of its growing military capabilities.
Trump receives gold medal and crown from South Korea
The medal represents the Grand Order of Mugunghwa, the country’s highest honor. Trump is the first US president to receive it. He said, “It’s as beautiful as it can possibly be” and “I’d like to wear it right now.”
He also received a replica of a royal crown from the Silla Kingdom, which existed from 57 B.C. to 935 A.D. The original crown was found in a tomb in Gyeongju, the kingdom’s capital. Trump said it was “very special.”
After the honor ceremony, Trump and Lee sat down for a meeting with their advisers.
Much like he did when visiting the White House, Lee cranked up the flattery, telling Trump that “you are indeed making America great again.”
He expressed interest in obtaining nuclear-powered submarines, saying, “We can help your activities around this region.”
Meanwhile, Lee asked Trump to allow South Korea to receive fuel needed to develop nuclear-powered submarines.
During their bilateral meeting on Wednesday, Lee said South Korea doesn’t intend to build nuclear-armed submarines but needs conventionally armed, nuclear-powered ones that are capable of operating quietly underwater for extended periods.
He said that the country’s diesel submarines are constrained in their ability to track North Korean or Chinese submarines.
South Korea’s access to such fuels is strictly restricted by a bilateral deal with the United State due to worries about the proliferation of technologies needed to build nuclear weapons.
“If it’s possible for you to allow us to receive fuel (for nuclear-powered submarines), we could build several conventionally armed submarines with our own technology and carry out defense operations in the eastern and western seas of the Korean Peninsula,” Lee said. “I believe that would also significantly reduce the burden on U.S. forces. “
Lee also called for talks on broadening South Korea’s rights to reprocess spent fuel and enrich uranium for civilian energy purposes.
US ‘wedded’ to South Korea on shipbuilding
Speaking in South Korea ahead of the official start of the APEC summit, Trump touted the US partnership with his hosts to help restore shipbuilding in America. “We’re wedded, and we have a very special relationship, a special bond,” Trump said.
The president said that some of the people in the room where he was speaking had bought a Philadelphia shipyard.
South Korea’s Hanwha Group bought the Philly Shipyard last year.
The president’s first stop at the annual APEC Summit was a business forum, where he boasted of an “economic revolution” in America.
As usual, Trump criticized Federal Reserve Chairman Jerome Powell for the current state of interest rates. “He’s out of there in another couple of months,” Trump said. Powell’s term as chair ends in May.
