South Korea is once again in the international spotlight as President Lee Jae Myung prepares to welcome U.S. President Donald Trump to the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju next week. The gathering, set for October 29, 2025, comes at a moment of heightened geopolitical tension in the region and economic uncertainty back home in the United States. With North Korea’s recent ballistic missile tests, ongoing trade disputes, and a partial U.S. government shutdown, the stakes could hardly be higher.
In an exclusive interview with CNN on October 22, President Lee struck a notably optimistic tone, even as he acknowledged the "worsening tensions" on the Korean Peninsula. Just hours before his remarks, North Korea had fired ballistic missiles in its first military show of force since Lee took office in June. Yet, Lee remained steadfast in his belief that dialogue and diplomacy remain the best path forward. "I hope that (Trump and North Korean leader Kim Jong Un) will be able to engage in dialogue," Lee told CNN. "I also believe that President Trump wants to achieve world peace, and that is why I have made the recommendation for him to take on the role of a peacemaker."
While the prospect of a surprise Trump-Kim summit during this Asia trip remains remote, Lee did not dismiss the idea out of hand. "It would be a good thing if the leaders of the United States and North Korea could suddenly get together," he said. Trump and Kim Jong Un famously held several high-profile meetings during Trump’s first term, but those summits ultimately failed to yield any lasting breakthroughs. Still, as Lee pointed out, Trump indicated earlier this summer at the White House that he was willing to meet Kim again. Whether this willingness will translate into action remains to be seen.
Trump’s itinerary in Asia is packed with high-stakes encounters, and perhaps none more so than his expected meeting with Chinese President Xi Jinping on the sidelines of the APEC summit. According to CNN, Trump confirmed as recently as last Friday that he intends to meet Xi, though the exact details remain unclear. The U.S.-China relationship is under particular strain, with a fresh round of trade threats and tariff disputes dominating headlines. MarketWatch reported that since October 10, Trump has threatened to raise U.S. tariffs on China by a staggering 100 percentage points, citing Beijing’s moves to restrict American access to rare-earth minerals—materials crucial for the electronics industry. This saber-rattling has left investors on edge, with many hoping the Asia trip will at least result in an extension of the current trade truce between the two economic giants.
But the visit’s implications stretch beyond the Asia-Pacific. As MarketWatch noted, Trump’s absence from Washington could prolong the ongoing U.S. government shutdown, potentially pushing a resolution into November. There’s a growing sense among lawmakers and market watchers that the president needs to be at the center of negotiations for the deadlock to break. So while the international community looks to Asia for signs of progress, many Americans are watching nervously to see when their government will fully reopen.
For South Korea, the diplomatic balancing act between its traditional alliance with the United States and its deep economic ties to China is nothing new. “We have different ideologies and also a different system of government … (but) we cannot shut out China,” Lee told CNN, underscoring the complexity of Seoul’s foreign policy. The U.S.-South Korea alliance remains “vital,” Lee insisted, but managing the China relationship requires constant finesse. “When it comes to relationships between countries, you cannot cut it clean with a knife and say: ‘This country is our friend, and this country is not.’ It’s just not that simple – it’s much more complicated and complex,” he explained.
South Korea’s economic fortunes are closely tied to both superpowers. The country is home to the largest U.S. military base overseas, with 41,000 American personnel and their families stationed there. At the same time, China stands as one of South Korea’s most important trading partners. Lee acknowledged that Chinese companies are catching up with, and in some cases overtaking, South Korean firms in critical sectors such as high-tech manufacturing. Yet he remains confident in Korea’s continued leadership in areas like semiconductors and automobiles. “There remain many areas where Korean firms can win,” Lee said, adding that South Korea is committed to sharing this expertise with the United States as part of their broader economic and technological partnership.
Indeed, South Korea’s willingness to support the U.S. extends beyond mere rhetoric. “In the past we have received a lot of assistance from the United States, and so we are willing to provide assistance for the US’ efforts to revamp its manufacturing industry to the extent possible,” Lee stated. This spirit of cooperation was put to the test earlier this summer, when Lee negotiated a trade deal with the Trump administration in late July to stave off steep tariffs on Korean exports. The agreement included a $350 billion investment flow from South Korea to the U.S. However, detailed negotiations have since dragged on, leaving Korea’s key automotive sector at a disadvantage. Korean automakers currently face 25% U.S. tariffs, while rivals from Japan and Europe enjoy much lower rates.
Complicating matters further are recent U.S. immigration enforcement actions that have rattled South Korea. Last month, nearly 500 people—mostly Korean nationals—were arrested during an Immigration and Customs Enforcement (ICE) raid at a Hyundai plant in Georgia. The detainees were subsequently flown back to South Korea, sparking outrage among Koreans and prompting Trump to assure the public that he did not want to “frighten off or disincentivize investment into America by outside countries or companies.”
Despite these strains, President Lee remains upbeat about the prospects for a mutually beneficial agreement with Washington. “There are differences in opinion between South Korea and the US in the ongoing talks, but I believe that eventually we will get there because the United States is the leading country when it comes to the values of democracy and the free market system,” he said. Critics have accused Trump’s tariff demands of being excessive, especially for a long-standing ally like South Korea. When asked about this, Lee simply laughed and replied, “I believe that we will, in the end, be able to reach a rational result that can be acceptable.”
As the world watches the APEC summit unfold in Gyeongju, the hopes of many ride on the possibility that dialogue, diplomacy, and a bit of pragmatic optimism can help cool tensions and pave the way for economic stability in a turbulent time.
