Trump's move to scale back joint drills linked to frustration over Korea's investment pace: Report

U.S. President Donald Trump’s decision to scale back joint military exercises with South Korea was partly driven by frustration with the pace of the country’s investment commitments to the United States, according to a U.S. media report, suggesting that Washington is linking economic issues to security matters to pressure Seoul.

“Trump’s threat is also driven by administration-wide economic frustrations with Seoul, said the people, who like others in this story were granted anonymity to discuss sensitive dynamics between the two countries,” wrote U.S. political news outlet Politico on Monday. 

“I think part of it is that Korea is treating this like a regular investment, in the sense that they want all the T’s crossed and the I’s dotted before they make an announcement, and that’s just not the way it works in a Trump administration,” Victor Cha, the U.S. National Security Council director for Asia under former U.S. President George W. Bush and now the Korea chair at the Center for Strategic and International Studies, told the outlet. 

South Korea pledged a total $350 billion in investments during tariff negotiations with the United States. Of that amount, $150 billion was earmarked for cooperation in the shipbuilding industry. Specific destinations for the remaining $200 billion have yet to be announced.

A source familiar with the matter described South Korea as particularly slow to follow through on its commitments compared to other countries. Japan, for instance, agreed to invest $550 billion in the United States and has already finalized six projects.

“They [South Korea] are the slowest negotiators ever,” the source said to Politico.

The Trump administration is also unhappy with the South Korean government’s regulatory action against Coupang, a U.S.-based e-commerce company with its main operations in South Korea, Politico said. 

South Korea’s Personal Information Protection Commission imposed fines totaling 624.7 billion won ($442.5 million) on Coupang in June over personal data leaks, the collection of personal information without a legal basis and other issues.

One source cited by Politico described Trump as someone who actively uses “leverage” in negotiations. The comment raises the possibility that Trump could use security issues as bargaining chips to secure desired outcomes on economic matters, including South Korea’s investment commitments and corporate regulations.

The Politico article comes after Trump’s Truth Social post on Sunday, in which he stated that he had instructed U.S. Secretary of Defense Pete Hegseth to “substantially” reduce the scale of joint military exercises between South Korea and the United States.

Trump cited his good relationship with North Korean leader Kim Jong-un as a reason for the decision. He also raised South Korea’s refusal to respond to a U.S. request for support related to the war with Iran.

BY JEONG JAE-HONG [kim.jiye@joongang.co.kr]