South Korea Says ‘Substantial Progress’ Made In US Tariff Talks Ahead Of APEC Summit

• The two sides are negotiating a $350 billion investment fund aimed at capping U.S. tariffs on Korean goods at 15%, with final details still under discussion.
• Korean conglomerate leaders, including those from Hyundai, SK Inc., and Hanwha, met President Donald Trump at Mar-a-Lago over the weekend, reportedly discussing trade and investment.
• On Stocktwits, sentiment toward South Korea’s EWY ETF was bearish despite its 74% year-to-date surge, outpacing SPY and QQQ.

South Korea’s top policy official said the country made “substantial progress” in negotiations with the U.S. on a new trade framework, following a weekend that mixed diplomacy with business and saw leading Korean tycoons join President Donald Trump for a golf event at his Mar-a-Lago resort.

Talks Gain Momentum Ahead Of APEC

Presidential policy chief Kim Yong-beom said most major sticking points had been resolved, though a few details still require further work. He added that the likelihood of finalizing a deal at next month’s Asia-Pacific Economic Cooperation (APEC) summit had increased, according to a Bloomberg report.

At the core of the discussions is a $350 billion investment fund that would help cap U.S. tariffs on Korean goods at 15%. Negotiators are still debating how the fund will be structured, which could reportedly involve loans and guarantees in both won and U.S. dollars.

Business Leaders Meet Trump

The progress came after reports that executives from Hyundai Motor, SK Inc., and Hanwha joined Trump for a golf session at Mar-a-Lago, alongside Japanese and Taiwanese business leaders. The event reportedly lasted more than seven hours, with trade and investment topics likely discussed.

Trump, who often uses his Florida estate for informal diplomacy, has hosted numerous global figures there over the years.

Investment And Labor Strains

South Korean companies have become key investors in U.S. industries like electric vehicles, semiconductors, and shipbuilding. But recent labor and visa issues, including the raid and arrest of South Korean workers at a Hyundai-LG battery plant in Georgia, have strained relations. LG has since started returning workers to U.S. sites.

Trump has pushed Seoul to commit funds “upfront,” while South Korea initially sought a currency swap to ease pressure on its reserves. The final package is expected to balance both sides’ priorities through a mix of financial instruments.

South Korea ETF Outperforms, Sentiment Lags

On Stocktwits, retail sentiment was ‘bearish’ for the iShares MSCI South Korea ETF (EWY) and ‘extremely bearish’ for both the SPDR S&P 500 ETF Trust (SPY) and the Invesco QQQ Trust (QQQ), with message volume ranging from ‘low’ for the South Korea fund to ‘high’ for the two major U.S. index ETFs.

So far this year, EWY has surged 74%, sharply outperforming SPY and QQQ, which are up 14% and 19%, respectively.

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