Brookings this week released a new commentary arguing that despite a strategically strong alliance, US-South Korea relations face recurring economic frictions over tariffs, digital trade, and market access that risk complicating broader cooperation on technology and investment.
The commentary states that both countries stand to gain significantly from deepening industrial and technological partnership, particularly in AI manufacturing, semiconductors, and shipbuilding, provided implementation challenges and regulatory disputes are managed carefully.
Andrew Yeo, senior fellow, Brookings Institution:
South Korea is positioning itself not simply as a supplier of AI components, but as a core manufacturing and infrastructure partner for the U.S. AI industry. Lee’s participation at the San Francisco AI Summit reflected a deliberate strategy to combine Korea’s strengths in advanced manufacturing with America’s leadership in frontier AI models and software. The summit highlighted proposed partnerships between U.S. and South Korean firms—reported to be worth up to $950 billion over time—covering high-bandwidth memory chips, foundry services, advanced packaging, AI data centers, and digital infrastructure.
Read the full commentary: Can America and South Korea strengthen ties amid economic frictions?