Friday, October 9, 2026

"Trump’s dissatisfaction with the pace of South Korea’s investment commitments may be behind the reduction in U.S.-South Korea drills"

Input
2026-08-18 11:20:37
Updated
2026-08-18 11:20:37
President of the United States Donald Trump speaks in the Oval Office at The White House on the 17th, local time, as he meets 16-year-old rescuer Ryder Williams, who saved a child off the coast of Santa Cruz, California, last month, along with the child he rescued, Nathaniel Rai, and Nathaniel’s family. Reuters, Yonhap News Agency


[Financial News] It has been reported that President Donald Trump’s order to scale back U.S.-South Korea joint military drills also reflected his frustration over economic issues with South Korea.
On the 17th, local time, Politico cited sources as saying that the Trump administration believes the South Korean government has not been moving quickly enough to carry out its investment commitments to the United States, which were agreed upon during tariff negotiations.
Of the $350 billion South Korea pledged, $150 billion has been allocated to shipbuilding industry cooperation, but specific investment destinations for the remaining $200 billion have not yet been announced. Citing sources, Politico noted, "Negotiations with South Korea are moving more slowly than the Trump administration expected. They are the slowest negotiating partner we have seen so far." Japan, which pledged $550 billion in investment in the United States, has already finalized six projects.
Victor Cha, the Korea chair at the Center for Strategic and International Studies (CSIS), said South Korea appears to be treating its U.S. investment commitments like a normal investment deal.
Cha said, "It seems South Korea wants to get every detail perfect before making an announcement," adding, "That is not how things work in the Trump administration."
The Trump administration is also reportedly displeased with how the South Korean government is handling Coupang.
In June, the Personal Information Protection Commission imposed a total fine of 624.7 billion won on Coupang over a personal data breach and the collection of personal information without a legal basis.
One source said, "President Trump likes to use leverage," adding, "Leverage only works when it is actually used, and Trump does that." The source said this shows Trump tends to link economic and security issues.
Earlier, on the 16th, Trump instructed Pete Hegseth, the Minister of National Defense, to sharply reduce the scale of U.S.-South Korea joint exercises.
Trump cited his good relationship with Kim Jong Un, President of the State Affairs Commission of North Korea, as one reason. He also mentioned that the South Korean government had not responded to a U.S. request for support in the war against the Islamic Republic of Iran.

[email protected] Lee Seok-woo, international affairs Reporter