Pres. Lee to head to U.S. and Japan: Tariffs, CHIPS Act, and uneasy alliances

Welcome to Within The Frame, where we bring the most pressing issues across the globe into focus. I'm Kim Mok-yeon.

With President Lee Jae Myung set to hold back-to-back summits with the U.S. and Japan, this week is shaping up to be a critical turning point in Korea’s economic diplomacy.

At the center of it all—tariff negotiations, a multibillion-dollar investment fund, and growing pressure from Washington for Seoul to take on more strategic burdens.

On the Japan front, optimism over renewed shuttle diplomacy is being tempered by unresolved historical disputes and political instability in Tokyo.

All of this unfolds as business leaders join the president abroad, with Korea’s trade, tech, and investment agenda under close watch.

To explore more on this, we invite Sung Soo Eric Kim, Founder & CEO of Datacrunch Global, and Adjunct Professor at Yonsei Graduate School of Business. Welcome.

Also joining us is Sunhyung Lee, Assistant Professor of Economics at Montclair State University. Good to see you.

1. Let's start with Prof. kim, so with the Korea–U.S. summit approaching, the presidential office is still working to finalize the detailed agenda. What are your expectations for the core economic topics to be addressed?

2. And President Lee Jae Myung is traveling to the U.S. with a high-profile business delegation, as the tariff deal enters its final stage. He called for a “one-team” mindset during his meeting with Korean corporate leaders. How crucial is the role of these companies in this visit?

3. During the meeting, several top CEOs—from Samsung to Celltrion—emphasized job creation, startup investment, and high-value industries. What are the chances for these corporate promises to turn into tangible outcomes in the U.S. market?

4. Following the tariff deal with Washington, we are looking ahead to the 350 billion-dollar investment fund, which is still under discussion. What should Korean companies be demanding in return to ensure this initiative doesn't become a one-sided political trophy?

5. So now that the U.S. has implemented steep new tariffs on 407 steel and aluminum derivative products, what are the main challenges Korean exporters face? And, what kinds of short-term and long-term strategies are needed?

6. Korea was notably excluded from tariff exemptions that the U.S. granted to Japan and the EU. What exemptions are we talking about, and why is Korea falling behind in these negotiations?

7. Just yesterday, reports say that the U.S. is considering taking equity stakes in chipmakers—including Samsung—in return for CHIPS Act subsidies. What kind of precedent does this set in government–corporate relations, and how might Korean firms respond to that kind of condition?

8. Beyond tariffs, Washington is pushing Seoul to contribute more toward alliance modernization—from higher defense costs to expanded military roles. What kind of spillover effect could this have on Korea’s economic priorities and trade leverage?

9. Japan’s internal political turmoil is growing, with pressure on Prime Minister Ishiba to step down. Could that instability derail any real progress on economic cooperation during the upcoming Korea–Japan summit?

10. The so-called "Shuttle diplomacy" with Japan is back in motion, but major historical disputes remain unresolved. Can Seoul and Tokyo realistically build deeper economic cooperation without progress on past issues?

Thank you for your time and for your insights tonight Prof.Lee and Prof.Kim, we appreciate it.

And that will be all from us on Within the Frame.

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