South Korea’s Bid for Stronger Ties with U.S. under Trump Administration

By Jihoon Lee

SEOUL (Reuters) – South Korea’s acting president, Choi Sang-mok, expressed hopes for reciprocal bilateral relations with the U.S. under the Trump administration. He cited concerns regarding the impact of U.S. policies on South Korea’s economy.

Choi stated, “The government will strive to further strengthen policy cooperation with the United States and promote mutual interests based on the shared value of the Korea-U.S. alliance,” referring to the alliance’s slogan, “We Go Together”.

He indicated plans to speak with U.S. President Donald Trump soon after Trump’s inauguration for a second term. Choi has been acting as president since December 27, managing South Korea through a significant political crisis caused by the impeachments of Prime Minister Han Duck-soo and President Yoon Suk Yeol, following Yoon’s unsuccessful attempt to impose martial law on December 3.

While Trump had a brief conversation with Yoon post-election, he had not spoken with either Han or Choi as of Tuesday. Choi congratulated Trump on his inauguration via social media, stating, “The Republic of Korea looks forward to Making the Alliance Great Again”.

Cho Hyun-dong, South Korea’s Ambassador to the U.S., represented the South Korean government at Trump’s inauguration, while other political figures were notably absent due to limited capacity. Some South Korean business leaders, including Shinsegae Group’s chairman and Coupang Inc.’s CEO, attended the event at the invitation of Donald Trump Jr.

Leif-Eric Easley, a professor at Ewha University in Seoul, pointed out that South Korea’s political instability has put it at a diplomatic disadvantage compared to China and Japan, both of which sent high-ranking officials to meet their American counterparts.

Tariff and Electric Vehicle Concerns

Choi noted South Korea’s intention to assess Trump’s proposed policies, particularly regarding tariffs and electric vehicles. In 2024, South Korea achieved a record trade surplus of $55.7 billion with the U.S., coinciding with fears that Trump might impose trade restrictions.

Experts believe that South Korea’s defense cost-sharing for approximately 28,500 U.S. troops stationed in the country could also face scrutiny, as Trump previously advocated for increased payments from Seoul despite a deal signed in October.

The stock market in South Korea reacted promptly to Trump’s policy announcements, with the KOSPI index decreasing after he hinted at imposing 25% tariffs on imports from Canada and Mexico, where many South Korean companies operate.

Additionally, shares of South Korean battery manufacturers fell sharply, with LG Energy Solution down by 5% due to Trump revoking existing electric-vehicle subsidy policies. Conversely, the shipbuilding sector, a focus of Trump’s cooperation plans, saw a rise in stock values.