Seoul, Washington at odds on agriculture, $350 bn fund ahead of summit

South Korea’s presidential chief of staff for policy Kim Yong-beom said all trade-related matters were settled under the recent South Korea-U.S. tariff agreement. Appearing on KBS’s current affairs program, Kim dismissed the possibility that the U.S. would demand further concessions on rice or beef during the upcoming summit, which is expected to take place as early as next week or later this month.

However, despite the presidential office’s position, some observers believe that issues such as rice market access and the management of the $350 billion investment fund could resurface. Since the agreement was announced on July 31, the Trump administration has made statements that differ from Seoul’s. A White House spokesperson said South Korea would offer “historic market access” to American products including cars and rice.

U.S. President Donald Trump said the investment fund would be “owned and controlled by the United States” and that he would personally choose where the money goes. Kim rejected this, saying, “This is an agreement between sovereign nations. No country would offer funding without knowing where it will be used.”

Because the deal was documented only in a memorandum rather than a formal agreement, the two sides have shown differences in interpretation. Many expect Presidents Lee Jae-myung and Donald Trump to use the upcoming summit to resolve these gaps and move toward issuing an official joint document.

Such discrepancies reflect Trump’s typical approach to negotiations. Unlike traditional trade talks, which usually conclude with binding agreements, joint statements, or memoranda of understanding, the Trump administration often bypassed these formal steps. This led to similar confusion in earlier tariff deals with Japan and the European Union, where U.S. announcements differed from what had actually been agreed.

The biggest differences between South Korea and the U.S. are over agriculture and control of the investment fund. Right after the deal, Trump said South Korea had agreed to fully open its market to U.S. products, including cars, trucks, and agricultural goods. This was widely interpreted as referring to full access to South Korea’s farming sector. Kim denied this, saying, “There will be no further opening of rice or beef markets.” He added that only technical discussions were underway to streamline the quarantine process for farm products.

Disagreements also persist over who controls the $350 billion investment fund. Of that, $150 billion is earmarked for the “South Korea–U.S. shipbuilding cooperation fund,” where Seoul could have a leading role in deciding investments. But the remaining $200 billion for the advanced industries lacks clarity on how it will be managed. Trump has described it as American-owned and controlled, with investment decisions made by him. Kim rejected that notion, saying, “It is not a structure where the U.S. unilaterally decides and we simply provide the money.” He added that the U.S. must present meaningful projects for review, and only those with “reasonable and commercial value” would qualify for investment.

Kim described the fund as more akin to a guarantee limit than an outright equity investment, estimating South Korea’s equity share at “less than 5%.” Most cases, he said, would involve providing guarantees for projects proposed by the U.S., not giving America unrestricted funds to invest at will.

The two governments also differ on how investment returns will be divided. The White House has said 90% of the profits would go to the U.S., but Kim noted, “There was talk of a 90–10 split in Japan’s case, but not in ours. That was merely a claim made by U.S. Commerce Secretary Howard Lutnick.” The White House added that 90% of profits would go toward paying down U.S. debt and funding projects selected by the president. Kim said it was hard to say whether that characterization was accurate, explaining that such matters would be settled later by bilateral working-level bodies, such as between government ministries and state-run banks.

These unresolved trade issues could weigh on the upcoming summit. Trump has said that President Lee Jae-myung will visit the White House “within two weeks” to announce a “massive investment” at the summit. Observers expect the two leaders to discuss the details of the investment funds directly. Within the ruling bloc, some suggest it would be ideal if Lee could secure even a partial reduction in U.S. auto tariffs, while others warn South Korea might be pressed to make additional concessions, such as large-scale purchases of Boeing aircraft, as Japan did.