No defense cost pressure in Korea-US tariff deal, but issue expected at summit

Defense issues were notably absent from a high-stakes trade agreement unveiled Thursday by the leaders of Korea and the United States, despite earlier indications that Seoul was preparing a comprehensive deal encompassing both economic and security matters.

But analysts say it is still too soon for optimism, with more sensitive security issues expected to dominate the agenda at an upcoming summit between President Lee Jae Myung and President Donald Trump.

The tariff deal, announced by both leaders on their social media accounts, lowers U.S. tariffs on Korean imports to 15 percent from a proposed 25 percent. In exchange, Korea has pledged to invest $350 billion in the U.S.

The comprehensive investment package — focused primarily on shipbuilding, semiconductors, secondary batteries, biotechnology and energy — comes after months of tension following Trump’s April announcement of a so-called “reciprocal” tariff that was scheduled to take effect Friday.

Notably, the agreement made no mention of defense issues, despite earlier plans by Seoul to include them as part of a broader deal.

“The talks were mostly about trade,” said Kim Yong-beom, presidential chief of staff for policy, at a press briefing on the tariff deal. “Security and other issues are expected to be discussed at the summit between the two leaders.”

The summit is expected to take place within the next two weeks at the White House, Trump wrote on his Truth Social account. Lee’s office said the exact timing is being finalized through diplomatic channels.

Korea’s Foreign Minister Cho Hyun is scheduled to meet U.S. Secretary of State Marco Rubio in Washington on Thursday (local time), marking their first meeting since Cho assumed office earlier this month. The two are expected to discuss preparations for the summit.

One of the likely agenda items at the summit is what both governments have called the “modernization of the alliance,” a term that increasingly reflects Washington’s push for its Asian ally to assume a larger share of defense responsibilities.

In a phone call Thursday with U.S. Defense Secretary Pete Hegseth, Korean Defense Minister Ahn Gyu-back reaffirmed Seoul’s commitment to working with Washington to modernize the alliance in a mutually beneficial way amid shifting security dynamics in the region.

The exact meaning of modernization remains unclear. But observers believe it could involve Trump’s demands for Seoul to significantly increase its defense spending —potentially up to 5 percent of its gross domestic product — and expand the role of U.S. Forces Korea (USFK), especially in the event of a military conflict involving Taiwan.

Trump, who has repeatedly criticized what he sees as Korea’s insufficient contributions to the alliance, has also signaled his intention to renegotiate the Special Measures Agreement, which outlines Seoul’s financial obligations for the presence of U.S. troops on the peninsula.

Although the trade deal did not include defense procurement, such issues may still emerge in the upcoming summit. Recent trade agreements between the United States and allies including Japan and the European Union have included large-scale purchases of American military equipment.

“Both Korea and the U.S. recognize the need to modernize and further develop their alliance in response to the current global landscape and complex crises of the 21st century. Related discussions are currently underway in close coordination,” foreign ministry spokesperson Lee Jae-woong said during a briefing.

Kim Joon-hyung, lawmaker of the minor Rebuilding Korea Party who previously served as chancellor of the Korea National Diplomatic Academy, warned that pressure on defense issues is likely to intensify in the coming weeks.

“The tariff deal may be finalized for now, but I’m more concerned about what comes next, particularly regarding increased pressure over defense cost-sharing and U.S. plans to reposition USFK to counter China and Russia, all under the name of modernizing the alliance,” Kim said in an interview with local broadcaster SBS.

“That could bring even greater pressure than the tariff negotiations,” he added.