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When Lee, Trump talk business, the devil's in the details

Published: 24 Aug. 2025, 18:05 Updated: 24 Aug. 2025, 20:02

President Lee Jae Myung, right, and First Lady Kim Hea Kyung wave as they board Air Force One at Haneda Airport in Tokyo on Aug. 24. [JOINT PRESS CORPS]

Three issues will dominate the economic agenda when President Lee Jae Myung and U.S. President Donald Trump meet on Monday: the $150 billion MASGA shipbuilding project, Korea’s $350 billion investment package and nuclear power cooperation.

The summit follows a July 30 tariff agreement in which Washington agreed to lower tariffs on Korean goods, including cars, from 25 percent to 15 percent — the same rate applied to Japan and the European Union. In return, Seoul pledged massive U.S. investments and $100 billion in energy imports. But differences remain over how profits from those investments will be handled.

Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo traveled to the United States ahead of the summit to continue follow-up discussions on tariffs, according to the Ministry of Trade, Industry and Energy on Sunday.

Kim, who left for Washington on Friday, met U.S. Commerce Secretary Howard Lutnick and Energy Secretary Chris Wright.

Industry Minister Kim Jung-kwan, left, shakes hands with U.S. Energy Secretary Chris Wright before their meeting in Washington on Aug. 22. [YONHAP]

Yeo, who arrived earlier, held talks with U.S. Trade Representative Jamieson Greer.

"At this summit, the leaders of Korea and the United States will discuss ways to strengthen economic cooperation in manufacturing, including semiconductors, batteries and shipbuilding, as well as economic security partnerships in advanced technology and critical minerals, based on the results of the tariff negotiations," the presidential office said on Aug. 12.

Under the July 30 deal, the United States agreed to lower its reciprocal tariff rate on Korean goods from 25 percent to 15 percent, in line with Japan and the European Union, while adjusting automobile tariffs from 25 percent to 15 percent.

In return, Korea pledged a $350 billion U.S. investment package and $100 billion in U.S. energy imports. The investment plan, however, remains incomplete, and differences linger.

U.S. officials said Washington would claim 90 percent of profits from Korean investments, while Seoul described the arrangement as “reinvestment.” Officials expect the summit to clarify timing and details.

Attention is particularly focused on the "Make American Shipbuilding Great Again” (MASGA) project — Korea's proposal for bilateral shipbuilding cooperation with the United States — which accounts for $150 billion of the investment package.

Negotiations have included various options: additional acquisitions of U.S. shipyards by Korean firms, new shipyard construction in the United States, supply of U.S. naval and commercial vessels built in Korea and work force training programs in the United States.

President Lee plans to visit the Hanwha Philadelphia Shipyard the day after the summit.

At least 16 top Korean business leaders will accompany him as part of the economic delegation, including Samsung Electronics Executive Chairman Lee Jae-yong, Hyundai Motor Group Executive Chair Euisun Chung, LG Group Chairman Koo Kwang-mo and Hanwha Group Vice Chairman Kim Dong-kwan. Analysts expect some of these companies to announce additional U.S. investment plans.

Nuclear power cooperation has also emerged as a priority, as Trump signed an executive order in May to quadruple U.S. nuclear power capacity from about 100 gigawatts to 400 gigawatts by 2050.

Washington has emphasized the role Korean companies could play in expanding U.S. nuclear infrastructure. Executives from Korea Hydro & Nuclear Power and Korea Electric Power Corporation have already traveled to the United States to discuss potential cooperation with U.S. firms, including the Westinghouse Electric Corporation.

Unresolved nontariff barriers in agriculture and digital trade could resurface during Monday's summit.

“The United States is indeed raising issues such as expanded rice market access and the lifting of restrictions on U.S. beef imports, and discussions are underway.” National Security Adviser Wi Sung-lac said. “We are responding in line with our basic position.”

National Security Adviser Wi Sung-lac speaks during a briefing at a hotel press center in Tokyo on Aug. 24. [YONHAP]

One trade expert said that differences remain wide.

“The United States claimed Korea fully opened its agricultural market, while Seoul insisted it defended rice and beef," the expert said. "Additional concessions may be off the table, but discussions on quarantine procedures are likely. The United States is also expected to press for renewed talks on issues left out of the July 30 agreement, including the Online Platform Act and restrictions on exporting high-precision domestic maps.

Park Sung-hoon, professor at Korea University’s Graduate School of International Studies, said Korea must prepare for unexpected demands.

“Since the previous deal was only verbal, it needs to be put in writing,” he said. “In that process, President Trump could raise new conditions on agriculture or other areas, and Korea should be ready.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM WON [[email protected]]