Trump Fails on Funds Amid SKorea Visit 10/29 06:11

   President Donald Trump wanted South Korea to invest $350 billion in the 
American economy. So far, he's settling for a gold medal and a crown.

   GYEONGJU, South Korea (AP) -- President Donald Trump wanted South Korea to 
invest $350 billion in the American economy. So far, he's settling for a gold 
medal and a crown.

   Both were gifts from the country's president, Lee Jae Myung, who dialed up 
the flattery while Washington and Seoul struggled to finalize details on 
financial promises during the last stop of Trump's Asia trip.

   There was a special lunch menu featuring U.S.-raised beef and a gold-adorned 
brownie. A band played Trump's campaign anthem of "Y.M.C.A." when he stepped 
off Air Force One. Lee told him that "you are indeed making America great 
again."

   Trump can be mercurial and demanding, but he has a soft spot for pomp and 
circumstance. He was particularly impressed by a choreographed display of 
colorful flags as he walked along the red carpet.

   "That was some spectacle, and some beautiful scene," Trump told Lee during 
their meeting. "It was so perfect, so flawlessly done."

   Earlier in the day, Trump even softened his rhetoric on international trade, 
which he normally describes in predatory terms where someone is always trying 
to rip off the United States.

   "The best deals are deals that work for everybody," he said during a 
business forum.

   Washington and Seoul are working on a trade deal

   Trump was visiting while South Korea is hosting the annual Asia-Pacific 
Economic Cooperation summit in the historical city of Gyeongju. He previously 
stopped in Japan, where he bonded with the new prime minister, and Malaysia, 
where he attended a summit of the Association of Southeast Asian Nations.

   The Republican president has been trying to tie up trade deals along the 
way, eager to show that his confrontational approach of tariffs is paying 
dividends for Americans who are uneasy about the job market and watching a 
federal government shutdown extend into its fifth week.

   However, South Korea has been tough to crack, with the sticking point being 
Trump's demand for $350 billion of direct investment in the U.S.

   Korean officials say putting up cash could destabilize their own economy, 
and they'd rather offer loans and loan guarantees instead. The country would 
also need a swap line to manage the flow of its currency into the U.S.

   Trump, after meeting with Lee, said "we made our deal pretty much 
finalized." He did not provide any details, and the White House did not 
immediately respond to a request for comment.

   Oh Hyunjoo, a deputy national security director for South Korea, told 
reporters earlier in the week that the negotiations have been proceeding "a 
little bit more slowly" than expected.

   "We haven't yet been able to reach an agreement on matters such as the 
structure of investments, their formats and how the profits will be 
distributed," she said Monday.

   It's a contrast from Trump's experience in Japan, where the government has 
worked to deliver the $550 billion in investments it promised as part of an 
earlier trade agreement. Commerce Secretary Howard Lutnick announced up to $490 
billion in specific commitments during a dinner with business leaders in Tokyo.

   For now, South Korea is stuck with a 25% tariff on automobiles, putting 
automakers such as Hyundai and Kia at a disadvantage against Japanese and 
European competitors, which face 15%.

   Lee, speaking at the business forum before Trump arrived, warned against 
trade barriers.

   "At a time when protectionism and nationalism are on the rise and nations 
focus on their immediate survival, words like 'cooperation,' 'coexistence' and 
'inclusive growth' may sound hollow," he said. "Yet, paradoxically, it is in 
times of crisis like this that APEC's role as a platform for solidarity shines 
brighter."

   Trump and Lee swap praise despite disagreements

   Lee took office in June and had a warm meeting with Trump at the White House 
in August, when he praised Oval Office renovations and suggested building a 
Trump Tower in North Korea.

   He took a similar approach when Trump visited on Wednesday. The gold medal 
presented to Trump represents the Grand Order of Mugunghwa, the country's 
highest honor, and Trump is the first U.S. president to receive it.

   Trump said "it's as beautiful as it can possibly be" and "I'd like to wear 
it right now."

   Next was a replica of a royal crown from the Silla Kingdom, which existed 
from 57 B.C. to 935 A.D. The original crown was found in a tomb in Gyeongju, 
the kingdom's capital.

   Besides trade disagreements, there have been other points of tension between 
Washington and Seoul this year. More than 300 South Koreans were detained 
during a U.S. immigration raid on a Hyundai plant in Georgia in September, 
sparking a sense of outrage and betrayal.

   Lee said at the time companies would likely hesitate to make future 
investments unless the visa system was improved.

   "If that's not possible, then establishing a local factory in the United 
States will either come with severe disadvantages or become very difficult for 
our companies," he said.

   Asked Monday about the immigration raid, Trump said, "I was opposed to 
getting them out," and he said an improved visa system would make it easier for 
companies to bring in skilled workers.

   Trump-Xi meeting is expected Thursday

   While in South Korea, Trump is also expected to hold a closely watched 
meeting on Thursday with Chinese leader Xi Jinping. Washington and Beijing have 
clashed over trade, but both sides have indicated that they're willing to dial 
down tensions.

   Trump told reporters aboard Air Force One on Wednesday that he expects to 
lower tariffs targeting China over the flow of fentanyl ingredients.

   "They'll be doing what they can do," he said. Trump added that "China is 
going to be working with me."

   Trump sounded resigned to the idea that he wouldn't get to meet North Korean 
leader Kim Jong Un on this trip. The president previously floated the 
possibility of extending his stay in South Korea, but on Wednesday said "the 
schedule was very tight."

   North Korea has so far dismissed overtures from Washington and Seoul, saying 
it won't resume diplomacy with the United States unless Washington drops its 
demand for the North's denuclearization. North Korea said Wednesday it fired 
sea-to-surface cruise missiles into its western waters, in the latest display 
of its growing military capabilities as Trump visits South Korea.

   Trump brushed off the weapons test, saying "he's been launching missiles for 
decades, right?"

   The two leaders met during Trump's first term, although their conversations 
did not produce any agreements about North Korea's nuclear program.