South Korea's Strategic Moves: Trade Deals and Security Pacts Await U.S. Approval
South Korea has proposed a trade and currency swap deal to the U.S., awaiting their response. While tariff negotiations face delays, progress on a security pact with the U.S. is underway. Seoul aims to finalize agreements by October during the Asia-Pacific summit, amidst increasing defense spending and nuclear fuel discussions.
South Korea has put forward its proposals for a trade agreement with the U.S., including a currency swap, but is yet to receive a response from Commerce Secretary Lutnick, a key negotiator. The deal is crucial for mitigating the foreign exchange impacts of a proposed $350 billion investment package.
Presidential Policy Adviser Kim Yong-beom emphasized the necessity of having the deal operational and logically sound to pass through parliament. The upcoming Asia-Pacific summit in Gyeongju could provide a decisive moment for these negotiations.
In parallel, a security pact between South Korea and the U.S. is making headway, potentially concluding before the summit. This reflects the broader strategy to lower U.S. tariffs through increased South Korean defense contributions and nuclear fuel rights. However, trade negotiations remain more intricate than previous U.S.-Japan deals.
(With inputs from agencies.)
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