In a rapidly shifting geopolitical landscape, South Korea finds itself at the heart of strategic maneuvering between the United States and China, with President Lee Jae Myung’s administration seeking to balance national interests, economic priorities, and security imperatives. Recent developments underscore the complexity of Seoul’s diplomacy as it navigates crucial shipbuilding cooperation with Washington, prepares for a possible historic visit from Chinese President Xi Jinping, and grapples with the ever-present challenge of North Korea’s nuclear ambitions.
On September 19, 2025, a senior Trump administration official described South Korea-U.S. shipbuilding cooperation as a “highly important deal that could help rebuild the U.S. defense industrial base,” according to The Dong-A Ilbo. This statement signals a potential shift in long-standing U.S. regulations that have restricted joint warship construction, notably the Byrnes-Tollefson Amendment and the Jones Act. The Byrnes-Tollefson Amendment prohibits U.S. naval vessels or their key components from being built overseas, while the Jones Act requires cargo moved between U.S. ports to travel on American-built ships. The Trump administration’s openness to “necessary adjustments” suggests that both countries are eager to forge a new path, one that could see South Korean and U.S. shipbuilders working more closely to boost American naval capabilities.
Discussions between South Korean and U.S. authorities are already underway, aiming to overcome legal and logistical obstacles. Seok Jong-geon, head of South Korea’s Defense Acquisition Program Administration, emphasized at a Washington forum on September 17 that “proactive U.S. leadership would be needed to resolve these issues quickly.” He outlined several proposals, including supplying components first or producing ship blocks in Korea for final assembly in the U.S. Seok’s remarks highlight the urgency and creativity both sides are bringing to the table, as they seek to package defense goals alongside economic and employment considerations.
This push for deeper cooperation comes at a time when South Korea’s foreign policy is under intense scrutiny. President Lee Jae Myung, appearing on the cover of Time magazine, reaffirmed his administration’s commitment to standing “together with the U.S. in the new global order, as well as supply chains centered on the U.S.” At the same time, he acknowledged the need to “manage our relationship with China so as not to antagonize them.” Lee’s remarks reflect a pragmatic approach: “Our values of democracy and market economy are based on our U.S.-South Korea alliance. But because of our geographical proximity to China, and our historical relationship, economic ties, as well as people-to-people ties, we cannot completely sever our relationship with China.”
Lee’s careful balancing act is not without risk. As he told Time, “There is a risk that South Korea could become the front line of a battle between two different blocs.” This sentiment underscores the delicate position Seoul occupies—caught between its security alliance with Washington and its deep economic interdependence with Beijing. Lee’s decision to decline an invitation to China’s recent Victory Day celebration, while maintaining dialogue with both powers, illustrates his administration’s nuanced approach.
The possibility of a breakthrough in Korea-China relations looms large on the horizon. Wi Sung-rak, head of the National Security Office of the President, announced on September 19 that there is “an open possibility that President Xi will visit Korea (for the Gyeongju APEC summit), and if he visits, we expect bilateral meetings (with President Lee).” If realized, this would be Xi Jinping’s first state visit to South Korea since 2014, marking a significant step in restoring ties that have been strained in recent years—particularly during the Yoon Suk Yeol administration, which prioritized value-based diplomacy with the U.S. and at times provoked Beijing over security and trade issues.
The potential summit between Lee and Xi is being carefully planned, with Seoul seen as the likely venue for a state visit following the APEC meeting. According to Maeil Business Newspaper, diplomatic officials from both countries are working to create a conducive atmosphere for Xi’s visit, which many observers see as a chance to “open the door to improving relations between the two countries.” Experts like Joo Jae-woo of Kyung Hee University and Hwang Jae-ho of Hankuk University of Foreign Studies stress the importance of reaffirming the “strategic cooperative partnership” between Seoul and Beijing, which could pave the way for renewed dialogue on regional security and economic cooperation.
Amid these diplomatic overtures, the persistent challenge of North Korea’s nuclear program remains a central concern. On September 17, South Korean Foreign Minister Cho Hyun met with his Chinese counterpart Wang Yi in Beijing, urging China to support the denuclearization of the Korean Peninsula and encourage Pyongyang’s return to dialogue. While Wang reaffirmed China’s “constructive role for peace,” he stopped short of explicitly endorsing denuclearization, highlighting the ongoing complexities in trilateral relations.
Meanwhile, relations with the United States continue to evolve. Despite the progress on shipbuilding cooperation, no Korea-U.S. summit is scheduled during President Lee’s visit to the U.N. General Assembly from September 22 to 26, a reflection of deadlocked tariff negotiations. Wi Sung-rak noted that “the possibility of a meeting (of the leaders of South Korea and the U.S.) is open in October,” but cited “complicated schedules and conditions” as reasons for the current delay. The absence of a summit with Japanese Prime Minister Shigeru Ishiba was also confirmed, though shuttle diplomacy between Seoul and Tokyo is expected to continue.
President Lee’s efforts to foster a “peace dividend” on the Korean Peninsula have also attracted international attention. On September 18, he welcomed Harvard professor Michael Sandel to the presidential office, discussing the economic and social benefits that could arise from easing military tensions. “My sincere hope is that a peace regime will be established in Korea so that all citizens can enjoy the peace dividend,” Lee remarked, echoing Sandel’s belief that democracy would thrive if polarization were reduced and the dignity of labor recognized.
As South Korea navigates these turbulent waters, its leaders are keenly aware of both the opportunities and dangers that lie ahead. Whether it’s forging new defense partnerships, managing great power rivalry, or striving for peace on the peninsula, Seoul’s choices in the coming months will resonate far beyond its borders.
