President Lee's Brinkmanship Led to Dramatic Tariff Deal [Gyeongju APEC]

As Tariff Talks Stalled, President Lee Told Aides:
"The One Who Has the Courage to Fall Off the Cliff Wins"
When Pressured to "Sign" Just Before the Washington Summit,
He Responded: "The Summit Does Not Have to Take Place"

President Lee Jae-myung is greeting U.S. President Donald Trump, who arrived at Gyeongju Museum in Gyeongsangbuk-do where the Korea-U.S. summit is being held on the 29th. Photo by Yonhap News

The dramatic resolution of the tariff negotiations between South Korea and the United States on the 29th was largely driven by the strategic responses of key negotiators, including President Lee Jaemyung. Analysts say that the government prompted a change in the U.S. stance by employing a kind of brinkmanship, even accepting the possibility of a “no deal” outcome at the Korea-U.S. summit.

During the tariff negotiations, President Lee instructed his aides to employ what is known as a “no-retreat” strategy. While fine-tuning the details of the Korea-U.S. investment fund, President Lee reportedly told the negotiation team, “The one who has the courage to fall off the cliff wins.” When the U.S. side strongly demanded “Just sign first” ahead of the summit at the end of August, he gave the directive that “The summit does not have to take place.”

In line with this approach, his aides maintained a tough stance in negotiations with the United States. Kim Yongbeom, Chief Policy Officer, explained that there was “a tense moment with two hours of raised voices” when the two sides could not narrow their differences. Kim Jeonggwan, Minister of Trade, Industry and Energy, was even called a “tough negotiator” by U.S. President Donald Trump during this summit.

Just before the Asia-Pacific Economic Cooperation (APEC) summit, President Lee gave a series of interviews with foreign media, publicly signaling his willingness to accept a no-deal outcome. In an interview with Bloomberg released on the 27th, President Lee emphasized, “All issues surrounding investment in the United States remain stumbling blocks.” On the same day, Oh Hyunjoo, Third Deputy Director of the National Security Office, also told foreign correspondents, “I think it will be difficult to reach an immediate agreement this time.”

The presidential office maintains that the negotiations were concluded in a way favorable to South Korea. In a briefing the previous day, Chief Policy Officer Kim said, “It is difficult to comment on the other party in the negotiation process,” but added, “We would not have made concessions in just a few days.” This is interpreted to mean that President Trump, who wanted to avoid protracted negotiations and achieve results from his overseas trip, made last-minute concessions.

He further explained, “As I have repeatedly said, President Lee would never neglect the national interest just because of timing. He acted according to that principle.”

This content was produced with the assistance of AI translation services.