U.S. President Donald Trump met with South Korean President Lee Jae Myung in the historic city of Gyeongju on Wednesday, as part of his six-day Asia tour that also included Malaysia and Japan. The two leaders discussed trade, defense cooperation, and regional security ahead of Thursday’s APEC summit.

The bilateral meeting came at a delicate time, as both countries continue to struggle to finalize a trade agreement. Despite a private meeting that lasted nearly two hours, no significant progress was reported.

Gold Crowns and the Mugunghwa Grand Order

During a formal ceremony, President Lee presented Trump with South Korea’s highest national honor—the Mugunghwa Grand Order, along with a replica of an ancient golden crown from the Silla Kingdom. According to the presidential office in Seoul, Trump became the first U.S. president to receive this decoration, in recognition of his “efforts to promote peace on the Korean Peninsula.”

Joking about the lavish gift, Trump remarked, “I’d love to wear it right now,” drawing laughter from attendees. The two leaders later shared a working dinner, yet their discussions failed to produce a concrete trade breakthrough.

Seoul Seeks U.S. Support for Nuclear-Powered Submarines

Defense cooperation dominated part of the conversation. President Lee urged Trump to support South Korea’s plan to acquire nuclear-powered—but conventionally armed—submarines.
“We are not seeking nuclear-armed submarines, only nuclear-powered ones to enhance deterrence and stability on the peninsula,” Lee stated.

Trump responded affirmatively but cautiously, emphasizing peace efforts:
“You’re technically still at war on the Korean Peninsula, but we’ll see what we can do to make things right,” he said. Trump also mentioned that he maintains good relations with North Korean leader Kim Jong Un, adding that they “get along very well” but have not yet been able to arrange a new meeting.

Trump and Lee Settle Terms of Long-Delayed Trade Deal

During Wednesday’s summit in South Korea, U.S. President Donald Trump and President Lee Jae Myung moved to finalize the long-disputed trade agreement between the two allies.

Speaking at a dinner with regional leaders during the Asia-Pacific forum, Trump announced, “We’ve made our deal — it’s nearly complete.”

The accord, first outlined in July, is designed to spare Seoul from the heaviest U.S. import tariffs in exchange for $350 billion in new investments in the American economy. Negotiations had stalled in recent months over the structure of those investments.

According to Lee’s aides, the leaders have now agreed to divide the $350 billion fund into $200 billion in installments of $20 billion each, while the remaining $150 billion will be directed toward shipbuilding projects backed by Washington.

Lee’s deputy, Kim Yong-beom, said the memorandum detailing the agreement was almost finalized and would be accompanied by a broader briefing on bilateral security and trade commitments in the coming days.

The White House has yet to comment on the pending trade pact, which still requires ratification by South Korea’s National Assembly.

Trump arrived in Gyeongju, the host city of this year’s Asia-Pacific Economic Cooperation (APEC) forum, just hours after returning from Tokyo amid renewed regional tension following North Korea’s cruise missile test. The U.S. president also expressed optimism ahead of his scheduled meeting with Chinese President Xi Jinping.

APEC Summit Looms as Trump Prepares to Meet Xi

Trump’s stop in Gyeongju precedes Thursday’s Asia-Pacific Economic Cooperation (APEC) Summit, where he is expected to meet Chinese President Xi Jinping in nearby Busan. The Chinese Foreign Ministry confirmed the meeting, marking the first in-person encounter between the two leaders since Trump took office in 2025 and introduced sweeping global tariffs.

Addressing a group of CEOs earlier in the day, Trump said he believed the United States and China could reach “a good deal for both sides,” while praising APEC countries for striving to reform a “broken” global trade system.
“Economic security is national security,” Trump declared. “That’s true for South Korea—and for every nation.”