SEOUL, South Korea: When U.S. President Donald Trump meets South Korean President Lee Jae Myung in Washington on Monday, the two leaders will face a wide agenda ranging from military costs and alliance strategy to trade, shipbuilding, and nuclear fuel policy.

The visit comes just weeks after the countries struck a deal to cut U.S. tariffs on Korean goods to 15 percent from a threatened 25 percent, alongside a US$350 billion South Korean investment package.

Defense costs and alliance pressures
The U.S. maintains 28,500 troops in South Korea, but Trump has long accused Seoul of "free-riding." Last year, South Korea agreed to increase its contribution by 8.3 percent to 1.52 trillion won ($1.09 billion) for 2026 under a five-year plan. Washington, however, continues to push for allies to raise defense spending to 5 percent of GDP, well above South Korea's current 2.3 percent.

Alliance ‘modernisation' and China's role
The U.S. has urged allies to adapt alliances beyond North Korea deterrence, potentially including contingencies such as tensions in the Taiwan Strait. While Seoul has reaffirmed its U.S. ties, President Lee has tried to maintain a careful balance with Beijing. South Korea's foreign minister has denied any talks about redeploying U.S. forces in case of a Taiwan crisis.

North Korea and denuclearisation
Lee has promised to lay the groundwork for dismantling Pyongyang's nuclear program, seeking talks with North Korea in close coordination with Washington. Trump, who continues to highlight his past summits with Kim Jong Un, and Lee could issue a joint message to Pyongyang. North Korea, however, has so far rejected Lee's outreach.

Shipbuilding and trade
Lee will also visit Philly Shipyard, now owned by Hanwha Ocean, to highlight South Korean investments in U.S. shipbuilding. Seoul has pledged $150 billion for shipbuilding cooperation as part of its broader U.S. investment package, with further details expected during the summit.

Nuclear fuel policy
South Korea may seek U.S. consent to reprocess or enrich nuclear material for industrial and environmental purposes. Current agreements bar Seoul from such activities without U.S. approval. While Lee opposes nuclear armament, some South Korean officials have called for retaining the option of enrichment to showcase "potential nuclear capabilities."

Corporate investment
The leaders are also expected to discuss chips, batteries, shipbuilding, and "economic security" in critical technologies and minerals. Announcements could include projects like Samsung's Texas chip plant, Hyundai's Georgia car factory, and Hanwha's shipyard expansion.

Questions remain over interpretations of the $350 billion investment fund and tariff timelines, with Seoul denying U.S. claims that it agreed to open its rice market.