By Park Hyong-ki
U.S. President Donald Trump is coming to Seoul today. And all eyes are on the conservative leader and what sort of bargaining power he will wield over President Moon Jae-in and his economic team.
There are a lot of business issues the two sides are expected to discuss, ranging from their free trade agreement (FTA) and the U.S. trade deficit with Korea to defense spending and China.
Above all, analysts say North Korea and its nuclear ambition will be at the top of the agenda in a much more formal and serious setting than Trump's meeting with Japan's Prime Minister Shinzo Abe.
The state meeting here won't include a round of golf and a steak dinner like Trump enjoyed with Abe.
"The purpose of his Asian tour is really seeking cooperation from the international community against North Korea," said Lawrence Kim, an analyst at NH Investment & Securities.
"Hence, Trump may put more focus on stressing the alliance and calling for global cooperation against North Korea. But he will also mention such economic issues as FTA renegotiations."
As Kim pointed out, the bilateral FTA renegotiation is expected to be one of the biggest agenda items for the two countries.
The bilateral deal, which went into effect in 2012, has been touted as an example of a win-win agreement.
But it is no secret that Trump is not satisfied with the deal, calling it a "job killer" for Americans many times since his election campaign.
As a businessman, he may again apply pressure to get the renegotiations going the way he wants, further threatening to completely withdraw from the Korea-U.S. FTA.
Analysts say the renegotiations of the North American Free Trade Agreement (NAFTA) could offer a clue to his strategy.
That deal is also facing some problems as the U.S., Canada and Mexico are finding it difficult to narrow their differences.
Mexico and Canada expect renegotiations will continue next year.
"If the renegotiation moves unfavorably for Korea, there is a risk of seeing a reduction in foreign investments in won-denominated assets," said Lee Mi-seon, an analyst at Hana Financial Investment.
Analysts are concerned that Trump is more aggressive toward Korea than he is toward Japan.
Although Korea and Japan have similar issues with the U.S. regarding trade imbalance, they worry Trump would be more inclined to work with Abe considering they are both conservatives with a hard-line stance on Pyongyang.
Moon, on the other hand, is a liberal President whose conciliatory position toward the North has been criticized by Trump via tweets.
U.S. President Donald Trump is coming to Seoul today. And all eyes are on the conservative leader and what sort of bargaining power he will wield over President Moon Jae-in and his economic team.
There are a lot of business issues the two sides are expected to discuss, ranging from their free trade agreement (FTA) and the U.S. trade deficit with Korea to defense spending and China.
Above all, analysts say North Korea and its nuclear ambition will be at the top of the agenda in a much more formal and serious setting than Trump's meeting with Japan's Prime Minister Shinzo Abe.
The state meeting here won't include a round of golf and a steak dinner like Trump enjoyed with Abe.
"The purpose of his Asian tour is really seeking cooperation from the international community against North Korea," said Lawrence Kim, an analyst at NH Investment & Securities.
"Hence, Trump may put more focus on stressing the alliance and calling for global cooperation against North Korea. But he will also mention such economic issues as FTA renegotiations."
As Kim pointed out, the bilateral FTA renegotiation is expected to be one of the biggest agenda items for the two countries.
The bilateral deal, which went into effect in 2012, has been touted as an example of a win-win agreement.
But it is no secret that Trump is not satisfied with the deal, calling it a "job killer" for Americans many times since his election campaign.
As a businessman, he may again apply pressure to get the renegotiations going the way he wants, further threatening to completely withdraw from the Korea-U.S. FTA.
Analysts say the renegotiations of the North American Free Trade Agreement (NAFTA) could offer a clue to his strategy.
That deal is also facing some problems as the U.S., Canada and Mexico are finding it difficult to narrow their differences.
Mexico and Canada expect renegotiations will continue next year.
"If the renegotiation moves unfavorably for Korea, there is a risk of seeing a reduction in foreign investments in won-denominated assets," said Lee Mi-seon, an analyst at Hana Financial Investment.
Analysts are concerned that Trump is more aggressive toward Korea than he is toward Japan.
Although Korea and Japan have similar issues with the U.S. regarding trade imbalance, they worry Trump would be more inclined to work with Abe considering they are both conservatives with a hard-line stance on Pyongyang.
Moon, on the other hand, is a liberal President whose conciliatory position toward the North has been criticized by Trump via tweets.
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