South Korea, US Hold Talks on Investment Pact and Middle East Role
South Korea and the US discussed a delayed $350 billion investment package and Seoul's possible role in Middle East security during talks between their top diplomats.
South Korean Foreign Minister Cho Hyun met US Secretary of State Marco Rubio in Washington on Friday, as the two allies worked through a delayed investment package and discussed Seoul's potential contribution to Middle East security.
The meeting followed weeks of criticism from US President Donald Trump over what he described as insufficient South Korean support for American efforts to pressure Iran. The two countries have yet to finalise agreements governing $350 billion in South Korean investments pledged under a trade deal reached last year.
Cho conveyed Seoul's willingness to make a substantive contribution to restoring freedom of navigation in the Strait of Hormuz, according to South Korea's foreign ministry, which did not elaborate on the specifics. Rubio, for his part, stressed the need for swift execution of the investment commitments, the State Department said. Both sides agreed to maintain communication so that ongoing consultation plans "bear good fruit", the ministry added.
The two diplomats also pledged continued collaboration in key strategic sectors, including semiconductors. Rubio underscored the importance of a fair and transparent business environment for US companies operating in South Korea.
Speaking in Seoul on Friday, South Korean President Lee Jae Myung said he would not deploy military assets to the Middle East in a manner that could draw the country into conflict. He added, however, that Seoul was reviewing whether to take a greater role in safeguarding navigation in the region.
Lee, who is due in the United States next week for the UN General Assembly, said concerns over the commercial viability of the investment package had become a sticking point in negotiations, though the two sides were nearing an agreement. He noted that some elements were difficult for Seoul to accept, but said the government would keep talking to ensure any deal protects South Korea's interests while benefiting both countries and the broader bilateral relationship.
Seoul committed last year to invest in US manufacturing in return for lowering tariffs on South Korean imports to 15%. Lee said Seoul had insisted on including a reference to "commercially reasonable" investments in the text of the agreement. Cho had said before leaving Seoul on Thursday that the investment plans had been delayed while procedural issues were clarified.
North Korea also featured in the talks, amid speculation over a possible summit between Trump and North Korean leader Kim Jong Un. Rubio and Cho reaffirmed their commitment to the complete denuclearisation of North Korea, the State Department said, while Cho expressed Seoul's active support for resuming talks between Washington and Pyongyang, according to the ministry. President Lee said a Kim-Trump summit was possible in the coming months, but remained uncertain.