"It was the first gathering of the committee since the two countries updated their trade deal... But 'the Administration believes Korea is not adhering to their digital commitments among other priorities,' according to one of the people who were all granted anonymity to candidly discuss the matter."

"Under the plan... Korea Zinc will sell new shares worth $1.9bn to a joint venture controlled by the US government and unnamed US-based strategic investors... The US Department of Defense will hold a 40 percent stake in the venture while Korea Zinc’s stake will be less than 10 percent..."

"Where US tech giants are vocally pushing back against Europe’s tech regulation, their Chinese counterparts are quietly negotiating deals to comply with the bloc’s rules — and avoid hefty fines."

"X is the first company to be fined under the European Union’s Digital Services Act, a sweeping law intended to force large internet companies to protect their platforms against manipulation and illicit content."

"At a Cabinet meeting held at the White House that day, Secretary Lutnick, regarding where to allocate the total cash investment of $750 billion pledged by Japan and South Korea ($550 billion from Japan, $200 billion from South Korea), said, 'For example, we will start with nuclear power.'"

"... when the European Commission made an outright retreat on its data and privacy rules and hit pause on its AI regulation... It sounded the death knell for what has long been described as the 'Brussels Effect'..."

This must hurt.

What being back home in Ulsan, South Korea 🇰🇷 looks like... 🚗🛻🚙🚢🛳️⛴️

"After the Europeans raised the steel tariffs on Mon, Lutnick responded by calling on the EU to 'analyze their digital rules, ... not put them away, but find a balanced approach ... then we will, together with them, handle the steel and aluminum issues and bring that on together,' he added."

It’s been almost two weeks since the U.S.–South Korea joint fact sheet and MOU were released, and here’s my analysis on Korea Tech & Trade Watch — how it compares with Japan’s deal, where Korea fell short, and how Seoul is pacing implementation of the promised investments. Hope you enjoy reading!

"The Trump administration has signaled in private talks that it could launch a Section 301 trade investigation if South Korea pursues legislation viewed as harmful to U.S. tech firms, even as the two nations move ahead with their new trade agreement."

A familiar play by China: "Chinese foreign ministry spokesperson said... 'I would also like to emphasise that due to [Japanese] PM Takaichi’s recent actions... and her erroneous remarks on major issues such as Taiwan... there would be no market for Japanese seafood in the current climate...'"

Meanwhile, in Florida...

Japan’s economy shrinks as US tariffs weigh on exports on.ft.com/49nN29D

So Chinese diplomats can call for a Japanese PM’s head to be cut off now? "On Saturday, Xue Jian, China's consul general in... Osaka, reshared a news article about Takaichi's parliamentary remarks on X. But he also added his own comment that 'the dirty head that sticks itself in must be cut off.'"

"The US and the ROK commit to ensure that US companies are not discriminated against and do not face unnecessary barriers in terms of laws and policies concerning digital services, including network usage fees and online platform regulations, and to facilitate cross-border transfer of data..."

"The MOU also says the agreement is an administrative understanding between Seoul and Washington, which does *not* create legally binding rights or obligations."

U.S.-South Korea Joint Fact Sheet:

"China’s Purchases of US Soybeans Stall Despite Trade Truce" 😲 www.bloomberg.com/news/article...

Update: "The Korean government has postponed its decision on whether to allow Google to export the country's high-resolution map data, delaying the review for a third time... has instructed Google to submit a revised application by Feb. 5 next year, after which a final decision will be made."

U.S.–S Korea Joint Fact Sheet delayed as security language, incl. nuclear-powered subs, is refined. A Presidential Office official says leaders assumed related infrastructure would be built in Korea; his notes quote President Lee, “We will build it here,” contradicting Trump’s Philly shipyard claim.

After Wednesday’s oral arguments in the Supreme Court about Trump’s tariffs, Jack Goldsmith thinks a majority of the court will be very worried about “giving a president basically unconstrained tariff authority to raise revenue that Congress as a practical matter cannot reverse,” he says.

argument over; i still think the most likely outcome is scotus invalidates the tariffs - at minimum the reciprocal ones.

Win or lose at the Supreme Court, Trump has other tariff tools at his disposal. "Get used to tariffs regardless of Supreme Court decision", U.S. treasury secretary says. www.cbc.ca/news/world/u...

Following Nvidia CEO Jensen Huang’s visit to South Korea and his pledge to supply 260,000 GPUs, Trump says: “The most advanced [chips], we will not let anybody have them other than the United States.”

Update on China’s Hanwha Ocean sanctions: "China will remove measures it took in retaliation for the U.S.’s announcement of a Section 301 investigation on China’s Targeting the Maritime, Logistics, and Shipbuilding Sectors for Dominance, and remove sanctions imposed on various shipping entities."

China-South Korea Summit after APEC in Gyeongju: Despite Beijing’s sanctions on Korean shipbuilder Hanwha Ocean and Washington’s green light for South Korea to build nuclear-powered submarines to better track Chinese and North Korean ones, the China–South Korea summit was surprisingly cordial.

A slap in the face at the first meeting: "Xi said, 'The two countries should be partners in cooperation, not threats to each other,' and added, 'We should widely promote the spirit of the Murayama Statement, which reflected on the history of aggression and apologized to victimized countries.'"

NVIDIA CEO Jensen Huang is visiting South Korea to strengthen partnerships with Samsung, Hyundai, SK, and Naver, unveiling plans for AI-powered networks and next-generation intelligent systems.

Worth noting: Trump and Xi met at the airport in South Korea when Trump was LEAVING APEC, and Xi ARRIVED to attend APEC summit.

Update: After U.S. Commerce Sec. Lutnick claimed on X that “semiconductor tariffs are not part of this [U.S.–Korea] deal,” Korea’s policy chief Kim called it “political messaging (정치인의 언어)” aimed at U.S. voters. He said a joint fact sheet will cover chip tariffs, “no less favorable than Taiwan’s.”

Trump said yes to South Korea building a "nuclear-powered" submarine. I repeat, Trump said yes to South Korea building a "nuclear-powered" submarine.

South Korea announced a trade deal with the US under which its $350bn investment consists of $200bn in cash (capped at $20bn a year) and $150bn for shipbuilding cooperation. US tariffs on Korean autos will fall from 25 per cent to 15 per cent, previously higher than those applied to Japanese rivals.

Trump visiting North Korea? "'I haven't set anything, but I'd love to meet with him [Kim Jong-un], if he'd like to meet.' Trump indicated he is open to stretching out his nearly weeklong trip, when asked about such a possibility, adding, 'I'll be in South Korea so I can be right over there.'"

"One problem is the sheer magnitude of these promises... the $350 billion would amount to 6.5% of South Korea’s GDP spread over the three years left in the second Trump term. Japan would have to spend $183 billion a year through 2028 under its MOU, or 4.4% of GDP for each the next three years."

APEC D-10, reported updates on the U.S.–S Korea trade deal: $350B vs $20B 1. Washington has delivered a de facto final offer before APEC, putting the ball in Seoul’s court. Aside from minor tweaks, the decision now sits with the leaders and will determine whether a joint text is announced at APEC.

A perfect example of the little guy paying the price: "With US companies accounting for 0.1 per cent of global shipbuilding... analysts said Beijing had targeted a South Korean company which has promised to play a prominent role in reviving the American shipbuilding sector."

"'There was never going to be a phase two,' he [Lighthizer] says firmly. 'I mean, in my opinion, the notion that you can have a deal that solves the problem between the United States and China is absurd. The whole notion of communism is to take over the world.'"

Is Norway going to be okay? 🫠

"That [additional U.S. investment announcement after the raid] drew Hyundai a strong rebuke from the South Korean government, which thinks Hyundai risks weakening Korea’s leverage in trade negotiations with the Trump administration by being too openly enthusiastic for a swift trade resolution."

"Although the Kishida administration and the Yoon Suk-yeol government, as well as the Ishiba administration and the Lee Jae-myung government, have made rapid progress... tensions over historical and territorial disputes are likely to escalate under Takaichi’s leadership."

"'We're very excited to get to build Stargate Korea and data centers with our wonderful partners to support the sovereign AI needs of Korea,' Altman said in a meeting with President Lee." But as I wrote earlier in KTTW, can South Korea’s ‘sovereign AI needs’ truly be met through a U.S. tech giant?

When the great Martin Wolf of the @financialtimes.com cites your op-ed in his work, you’re contractually obliged to brag a little! 😉

Following this morning’s announcement, I ask again.

Following US Kratsios’ comments, China’s Foreign Vice Minister: "It is vital to jointly foster an open, inclusive, fair and nondiscriminatory environment for technological development and firmly oppose unilateralism and protectionism... We support the UN playing a central role in AI governance."

Now they are talking MORE THAN $350 billion: "Lutnick... has discussed with Seoul the idea of slightly increasing the $350 billion they had previously guaranteed to the U.S. in July and suggested the final tally could get a bit closer to the $550 billion pledged by Japan."

“Kim’s [the Korean industry minister] comment reflects a notable view in Seoul that the $350bn could instead be used to cushion Korean companies harmed by the tariffs.” Gift link:

Happy to share that my op-ed in the @financialtimes.com has been published today (with an abridged version in print tomorrow), where I examine Seoul’s response to the recent ICE raid on the Hyundai–LG plant in Georgia and its implications for the stalled trade talks between Seoul and Washington.

"'Without a currency swap, if we were to withdraw $350 billion in the manner that the U.S. is demanding and to invest this all in cash in the U.S., South Korea would face a situation as it had in the 1997 financial crisis,' he said through a translator."