South Korea's president, Lee Jae Myung, has admitted that trade talks with the United States remain difficult, even though South Korea has pledged to invest 350 billion dollars in the U.S. According to a recent report, the president has been struggling with the situation, experiencing sleepless nights over the issue. More than a year after the initial agreement, the trade deal between South Korea and the U.S. has not yet been finalized. In July 2025, former U.S. President Donald Trump announced he would lower tariffs on South Korean products to 15% in exchange for Seoul's promise to invest 350 billion dollars in the U.S., either through loans or equity investments. However, the details of how this investment would be made have sparked intense debate. The negotiations have proven challenging, with President Lee Jae Myung warning that blindly pursuing such commitments could put South Korea in a situation similar to the 1997 financial crisis, which devastated the country's economy. South Korea's director of national security stated that the country is not in a position to pay the full 350 billion dollars to the U.S. all at once. "Our position is not a negotiation tactic. Objectively and realistically, this is not a level we are able to manage," he said, emphasizing the financial constraints South Korea faces. During a visit to South Korea in late October 2025, Trump claimed that a definitive trade agreement with Seoul was very close. However, he later threatened to impose new tariffs on South Korea, accusing it of delaying its promises. The U.S. expressed disappointment over South Korea's lack of follow-through on its investment commitments. South Korea reportedly asked for more time to refine the agreement, as the two countries were on the verge of announcing a first project. While South Korea reaffirmed its commitment to invest in the U.S., it also warned against being influenced by any relationship, pressure, or coercion, even though it did not claim the U.S. was acting that way. On the military front, Trump announced he would "significantly reduce" U.S. participation in annual military exercises with South Korea, calling them "costly" and sending "completely inappropriate and hostile" signals toward North Korea. This move may also be a response to South Korea's refusal to support U.S. military operations in the Strait of Hormuz, a stance reaffirmed by President Lee Jae Myung. These developments highlight the complex and evolving relationship between the two countries, as they navigate both economic and security challenges.