South Korea and the United States are getting closer to finalizing a long-awaited trade agreement after what officials described as "substantial progress" during high-level tariff talks in Washington.
Kim Yong-beom, South Korea's presidential chief of staff for policy, told reporters on Sunday that most key issues were settled during his meetings with US Commerce Secretary Howard Lutnick and other senior American officials.
"There was substantive progress on most of the issues," Kim said upon his return to Seoul, Benzinga reported. "But there are still one or two areas that need coordination."
According to Kim, both sides are aiming to conclude the remaining discussions before the Asia-Pacific Economic Cooperation (APEC) summit at the end of the month.
He added that the chances of finalizing the deal by then have "increased compared to before the visit."
The recent breakthrough follows months of tense negotiations surrounding a proposed $350 billion trade and investment deal between the two nations.
South Korean President Lee Jae Myung has insisted that any agreement must be "commercially rational" and fair to both sides.
Officials say one of the main sticking points has been the US demand for full upfront payment of the investment amount.
South Korea has argued that such a demand is unrealistic and exceeds what the country can afford.
South Korea’s top policy chief says the country made “substantial progress” on most key issues in tariff talks with the US, following a weekend of meetings that also saw Seoul’s top tycoons attend a golf event with Trump https://t.co/Uh0XiJ00kl
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Tariff Talks Advance as US Weighs 10-Year Deal
Negotiators are now reportedly considering a 10-year investment timeline instead of a one-time payment — a structure similar to how Japan funds its overseas projects.
Kim's comments suggest the US has shown flexibility, accepting parts of South Korea's proposal.
According to Chosun, a senior official from Seoul's presidential office said the unresolved matters are "very complex and serious," but added that the atmosphere of the talks was "constructive and cooperative."
"Both countries engaged in negotiations in a very serious and constructive atmosphere," Kim said.
"A negotiation proposal must be prepared within a range that South Korea can bear, and our opinions have significantly converged."
Some unresolved issues — including the currency swap deal and specific details about investment destinations — are expected to be addressed during the Korea-US summit at the upcoming APEC meeting in Gyeongju.
Meanwhile, former US President Donald Trump met with top South Korean business leaders, including executives from Samsung, Hyundai, LG, SK Group, and Hanwha, during a private golf event in Florida.
While tariffs were not discussed directly, Trump reportedly praised their investments in the US and encouraged continued participation in key industries like shipbuilding.
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