South Korea Officials Race To Seal $350B Tariff Pact With US Before APEC Summit

• Seoul’s top policy and industry chiefs will meet U.S. Commerce Secretary Howard Lutnick in Washington on Wednesday to iron out final details of the $350 billion investment deal that would cap tariffs on Korean goods at 15%.
• Negotiations accelerated after Washington dropped its demand for an upfront equity payment, with both sides now focused on structuring a balanced investment fund.
• Talks followed a weekend meeting between President Donald Trump and executives from Hyundai, SK Inc., and Hanwha at Mar-a-Lago, as leaders aim to announce progress at the upcoming APEC summit.

Senior South Korean officials will travel to Washington on Wednesday for urgent negotiations to finalise a $350 billion investment deal that would cap U.S. tariffs on Korean goods at 15%, ahead of the Asia-Pacific Economic Cooperation (APEC) summit later this month.

Presidential Policy Secretary Kim Yong-beom and Industry Minister Kim Jung-kwan are set to meet U.S. Commerce Secretary Howard Lutnick on Wednesday after initial talks last week. Kim said that “gaps have narrowed” but “a couple of matters” still remain unresolved, adding that Seoul will not sign a partial deal merely to meet a deadline, according to a Reuters report.

Deal Details And Economic Stakes

At the core of the discussions is a proposed $350 billion investment fund designed to balance U.S.-Korea trade relations. The fund’s structure, expected to include loans and guarantees in both won and U.S. dollars, is still under negotiation.

Progress accelerated after Washington dropped its demand for an upfront equity payment, which Seoul had warned could disrupt currency markets. Kim said South Korea is seeking revised terms, which better reflect both countries aligned interests.

Business At Mar-A-Lago

Negotiations picked up after Hyundai Motor, SK Inc. and Hanwha Group executives joined U.S. President Donald Trump at his Mar-a-Lago club over the weekend for discussions about trade and investment. Insiders said there was a long, informal meeting about trade and investment at Trump’s private club in Palm Beach, Florida, over the weekend.

The seven-hour meeting, which was attended by Japanese and Taiwanese business leaders, was a reflection of Trump’s way of wooing Asian business leaders before the APEC summit.

Broader Tensions

South Korean firms have become major investors in U.S. industries such as electric vehicles, semiconductors, and shipbuilding, though ties have been strained by recent labor and visa disputes, including a raid at a Hyundai-LG battery plant in Georgia.

Bearish Mood Grips US Markets On Stocktwits

On Stocktwits, retail sentiment toward U.S. markets was sharply negative, with both the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) showing ‘extremely bearish’ readings amid ‘high’ message activity, while sentiment toward the iShares MSCI South Korea ETF (EWY) was ‘bearish’ with ‘low’ engagement.

So far this year, SPY is up 16%, QQQ has gained 20%, while EWY has surged 74%, outperforming both U.S. indices.

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