SEOUL: South Korean President Lee Jae Myung urged his government on Tuesday (Nov 10) to build bipartisan support in the US Congress as Seoul navigates the economic and security implications of the US midterm elections.
Lee told a cabinet meeting to expand engagement with US state governments and businesses, closely monitor financial markets and prepare contingency plans to limit any economic fallout.
"The most important thing is to focus our diplomatic efforts on strengthening and expanding trust and cooperation between South Korea and the United States from a mutually beneficial perspective," Lee said.
Democrats took control of Congress in last week's US midterm elections, making extraordinary gains deep in Republican territory with voters delivering a sharp rebuke to President Donald Trump and his agenda.
Lee's comments come as South Korean officials assess how the changed political landscape in Washington could affect AI investment and a crowded bilateral agenda spanning trade to friction over the treatment of companies and defence.
Finance Minister Lee Hyoung-il told lawmakers on Monday that AI investment in the real economy remained robust despite stock market concerns following the US midterms, citing expert assessments.
Industry Minister Kim Jung-kwan said the election result was unlikely to slow such investment.
Trade and security issues
The two allies are working through a large South Korean investment package in the US, while progress has been slow on the transfer of wartime operational control and Seoul's push to acquire nuclear-powered submarines.
Analysts have said cooperation on South Korea's nuclear initiatives, including its push for uranium enrichment and spent fuel reprocessing, could face closer scrutiny in a Democratic-controlled Congress.
US Ambassador to South Korea Michelle Steel said in an interview published by the embassy on Monday that the alliance depended on working through bilateral differences thoughtfully.
"As leaders, we owe it to them to follow through on our commitments, handle sensitive conversations responsibly and keep the trust that is the foundation of our alliance," Steel said.
Speaking at a US-South Korea diplomacy forum on Tuesday, Steel also said American companies operating in South Korea "deserve to compete on a level playing field", a comment South Korean media said appeared to refer to US-listed e-commerce company Coupang.
Seoul's antitrust regulator on Monday fined Coupang 300.8 billion won (US$221 million) for anticompetitive practices in the food delivery market, marking the latest development in the company's ongoing regulatory disputes in South Korea.
The forum also highlighted obstacles facing other parts of Seoul's agenda with Washington. Former acting US ambassador to South Korea Joseph Yun said there was no consensus in Washington on issues including the transfer of wartime operational control and nuclear-powered submarines. - Reuters
