South Korea Will Host First APEC Summit in 20 Years Amid U.S.–China Tensions

South Korea’s President Lee Jae Myung, in office since June 2025 after a snap election following Yoon Suk Yeol’s impeachment, hosts the APEC summit in Gyeongju starting October 31. This is the first APEC in South Korea in 20 years, bringing together leaders from 21 economies. The spotlight, however, is on a high-stakes sideline meeting between U.S. President Donald Trump and Chinese President Xi Jinping on October 30. Lee’s “pragmatic diplomacy” will be tested as he balances ties with Washington, Beijing, and Tokyo amid rising trade disputes and security threats. Experts say the summit offers strong visuals but no guarantee of lasting breakthroughs.

The Trump-Xi talks could reshape global trade. Trump, pushing his “America First” agenda, may demand concessions on technology transfers and tariffs. South Korea, a key player in semiconductors, is directly affected. Lee’s team is working to secure a joint “Gyeongju Declaration” to promote free trade and avoid the 2018 Papua New Guinea failure due to U.S.-China discord. National Security Director Wi Sung-lac said most issues are resolved, but U.S. demands for direct cash from Seoul’s $350 billion investment package remain a hurdle. Trade Minister Kim Jung-Kwan confirmed sharp divisions with Washington ahead of the summit.

Japan adds another layer of complexity. New Prime Minister Sanae Takaichi, sworn in on October 21, holds hardline views on wartime history, straining ties with Seoul. Despite recent progress in trilateral military cooperation with the U.S., historical grievances over colonial rule and forced labor resurface. A planned three-way meeting between Lee, Trump, and Takaichi is unlikely due to time constraints, according to Deputy Security Director Oh Hyunjoo. Still, shared concerns over Trump’s security commitments may push Seoul and Tokyo closer in the long term.

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North Korea remains a persistent challenge. Pyongyang ignored Lee’s outreach and deepened ties with Russia and China. Trump, en route to Asia, expressed openness to meeting Kim Jong Un again, citing their past rapport. While no Trump-Kim summit is expected at APEC, South Korea has contingency plans ready. Lee supports renewed U.S.-North Korea dialogue, hoping it could pave the way for humanitarian aid and economic projects funded by Seoul. Such a move, however, risks complicating relations with Beijing.

Xi’s visit—his first to South Korea in 11 years—signals China’s interest in stabilizing ties. As Seoul’s top trading partner, Beijing seeks influence amid U.S. pressure. Lee aims to expand cooperation in green energy and supply chains while maintaining the U.S. alliance. Professor Jeonghun Min says APEC gives South Korea leverage to manage all three powers effectively. As world leaders gather in historic Gyeongju, the summit’s success hinges not just on declarations, but on Lee’s ability to turn diplomacy into durable policy wins.

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