South Korea is considering moving forward with a new security agreement with the United States before concluding stalled trade negotiations, the country’s foreign minister told reporters, Bloomberg reports.
Foreign Minister Cho Hyun said Seoul may proceed with the defense portion of talks after coordinating with Washington, as economic discussions are expected to take longer to resolve. The potential security deal, first discussed at a summit in August, is expected to cover South Korea’s planned increase in defense spending and additional purchases of U.S. weapons systems. Washington has been pressing allies to raise military outlays to 3.5% of GDP. Cho declined to give specifics, noting that the scale of any increase will depend on final terms.
The government aims to make progress ahead of the Asia-Pacific Economic Cooperation (APEC) summit later this month in Gyeongju, which U.S. President Donald Trump is expected to attend. Cho also indicated that the agreement could include revisions to the nuclear cooperation framework, potentially expanding Seoul’s rights to enrich uranium and reprocess spent fuel. Current rules limit enrichment to below 20% and prohibit reprocessing.
Trade talks remain at an impasse two months after a preliminary agreement was reached, with disputes over South Korea’s $350 billion investment pledge and proposals such as a currency swap. Cho acknowledged that Washington is reviewing options but described the outlook as “not particularly optimistic.” Prime Minister Kim Min-seok recently warned in an interview with Bloomberg that the absence of a currency swap could threaten financial stability, noting the investment package represents more than 80% of South Korea’s foreign reserves.
Cho added that a potential meeting between Trump and North Korean leader Kim Jong Un on the sidelines of the APEC summit cannot be ruled out, a development that could ease tensions on the Korean Peninsula.
