S. Korean, U.S. leaders hint at "win-win" deal in 1st phone call since Trump took office

As South Korea's political uncertainty subsides after former President Yoon Suk Yeol's dismissal last Friday, and with Acting President and Prime Minister Han Duck-soo in full command of the nation's foreign affairs, the first leader-level talks with the U.S. took place on Tuesday.

We have our Oh Soo-young who's at the Prime Minister's Office at the Sejong Government Complex.

Q1. Good morning Sooyoung. The two leaders held quite a lengthy phone call, didn't they?

Let's go over the highlights.

Sure, Dami. According to the Acting President's office, Han and Trump held a 28-minute conversation, marking the first top-level talks between Seoul and Washington.

The call also came around 16 hours ahead of Trump's 25 percent reciprocal tariffs targeting South Korea, that could significantly impact its export-driven industries.

That's on top of the 25 percent tariffs on steel and aluminium levied last month.

Han's office said the two leaders agreed to continue ministerial-level dialogue on economic cooperation on issues including the allies' trade balance.

As such, Han underscored South Korea's willingness to deepen cooperation in three key sectors: shipbuilding, liquefied natural gas, and addressing the trade imbalance.

On the security front, Han called for stronger unity on North Korea, stressing that the allies' resolve for denuclearization must outweigh Pyongyang's ambitions.

The two leaders reaffirmed their commitment to South Korea-U.S. military alliance and agreed to closely coordinate North Korea policy, while also advancing trilateral cooperation with Japan.

2. Of course, the phone call was full 의례적인 부분도 있었겠지만, 행간을 읽어보면 무역 긴장 속에서 두 정상이 전달하려던 메시지는 무엇이라고 생각하십니까?

It seems both leaders could be angling for a deal.

In an interview with CNN hours before the phone call, Acting President Han Duck-soo called for a win-win deal with President Trump—saying Seoul has no intention of retaliating against U.S. tariffs, unlike China and Japan.

He proposed what he called a "cool negotiation," expressing confidence that the friends and allies could reach a "mutually beneficial deal" that might prompt Washington to recalibrate its trade policies.

President Trump took to his social media Truth Social, describing what he called a "great phone call" with Han.

He said they discussed South Korea's "tremendous and unsustainable trade surplus," as well as tariffs, LNG deals, a joint Alaska pipeline venture, and the cost of stationing U.S. troops on the Korean Peninsula.

Trump claimed South Korea began paying "billions" in contributions towards military costs during his first term but that the deal was terminated by "Sleepy Joe Biden."

However, this doesn't align with facts.

A new defense cost-sharing agreement was reached last October, under the Biden government, under which South Korea will increase its contribution by 8.3 percent starting in 2026, with yearly increases based on the inflationary growth, marking a significant financial commitment by Seoul.

Despite the sticking points, the U.S President said there is "room and potential for a great deal" that could benefit both countries.

He expressed his preference for "one-stop shopping," which refers to bundling trade, defense, and industrial cooperation into a single, comprehensive deal.

Trump further noted that their trade officials are to engage in talks, noting that South Korea's "top team" was coming to Washington, referring to Seoul's Trade Minister Cheong In-kyo meeting with U.S. Trade Representative Jamieson Greer during his two-day trip to D.C.

After the call, several high-ranking officials including National Economic Council Director Kevin Hassett said Trump gave orders to "prioritize" reciprocal tariff negotiations with allies such as Korea and Japan.

Alright, let's see what happens over in Washington.

Thanks for your coverage Sooyoung.