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US Ambassador Steel says US-Korea ties face 'turbulence', urges Seoul to lead with US

🇰🇷 South Korea, Seoul 09:37 International Business6 Official updated 56 min ago first reported by 연합뉴스

In short

US Ambassador Michelle Steel told an AMCHAM luncheon in Seoul on 21 October that US-Korea relations are going through turbulence and that Korea is no longer a country the US must protect. She called China the biggest threat in the Indo-Pacific and said US firms in Korea must compete on fair terms. On 22 October the Foreign Ministry said disagreements between states need managing and declined to comment on her China remarks.

Read the full story 2 min read

Michelle Steel, the US ambassador to South Korea, said on 21 October that relations between Seoul and Washington are going through turbulence. She spoke at a special luncheon held by the American Chamber of Commerce in Korea (AMCHAM) at a hotel in Yongsan, Seoul. She said the two countries are going through a somewhat difficult period. [ 1 , 2 , 3 , 4 , 6 ]

Steel said Korea is no longer a country the US must protect, because its economy has grown greatly since the Korean War, and that it is time for Korea to lead the Indo-Pacific together with the US. Dong-A Ilbo and Yonhap reported that she described China as the biggest threat in the region. Dong-A Ilbo quoted her as saying 24% of world trade passes through the East China Sea. Its first report quoted her as saying China is 'sometimes' the biggest threat. [ 1 , 2 , 4 , 6 ]

On defence, Steel said Korea had acted by raising defence spending to 3.5% of GDP, adding that more can always be done. She also said the alliance can grow weaker or stronger, and that this is what Brunson and the embassy work on. [ 1 ]

On business, she said US companies in Korea deserve to compete on fair, equal terms without discrimination. Asked about digital regulation, she said there had been very large barriers, including searches, audits and fines. Newsis and Hankook Ilbo reported that she cited the joint fact sheet, which commits to fair treatment. Hankook Ilbo said she was understood to be referring to Coupang and gave background: Seoul police searched Coupang's headquarters last December in a data-leak investigation, and the Personal Information Protection Commission fined it 624.6 billion won in June. Steel did not name the company. [ 1 , 2 , 3 ]

On North Korea, Newsis reported Steel said the US has always held that denuclearisation without preconditions is important and that dialogue is open. She said the key is deterring war, and that the US could be a major asset in starting inter-Korean dialogue. [ 2 ]

Brunson, the commander of US Forces Korea, also attended. He said North Korea is advancing its ballistic and cruise missiles and that North Korea-Russia defence cooperation is deepening dangerously. He said training should run all year rather than rely on two annual exercises. Hankook Ilbo said he did not address changes to the conditions for wartime operational control transfer or the DMZ. [ 3 , 4 ]

On 22 October a Foreign Ministry official said the alliance has developed over 70 years and is the axis of Korean diplomacy. The official added that disagreements between states are normal and need managing, and said the ministry understood Steel to mean both countries are working toward a stronger alliance. The official declined to comment on her view of China. Korea Economic Daily's editorial said the government and ruling party should move quickly to improve ties with the US. [ 5 , 6 , 7 ]

Why it matters

Korean business outlets covered the US ambassador's remarks as a public sign of strain in the alliance. The Foreign Ministry's response stressed managing differences and avoided direct comment on her China assessment.

Key facts

  • Michelle Steel, the US ambassador to South Korea, spoke on 21 October at a special luncheon held by the American Chamber of Commerce in Korea (AMCHAM) in Yongsan, Seoul. [ 1 , 2 , 3 ]
  • Steel said Korea is no longer a country the US must protect and that it is time for Korea to lead the Indo-Pacific together with the US. [ 1 , 2 , 4 ]
  • She said Korea and the US are going through a kind of turbulence. [ 1 , 3 , 4 , 6 ]
  • Steel described China as the biggest threat in the Indo-Pacific. [ 4 , 6 ]
  • She said US companies in Korea should compete on fair terms without discrimination, and cited searches, audits and fines in the digital sector as difficulties. [ 1 , 2 , 3 ]
  • US Forces Korea commander Xavier Brunson, who also attended, said North Korea-Russia defence cooperation is deepening to a dangerous level and that joint training should run year-round rather than rely on two annual exercises. [ 3 , 4 ]
  • On 22 October a Foreign Ministry official said disagreements between countries are normal and need managing, and declined to comment on Steel's assessment of China. [ 6 , 7 ]

Confirmed by several sources

  • Steel said at the AMCHAM luncheon on 21 October that Korea and the US are experiencing a kind of turbulence. [ 1 , 3 , 4 , 6 ]
  • Steel said Korea is no longer a country the US must protect and should lead the Indo-Pacific with the US. [ 1 , 2 , 4 ]
  • Steel said US companies in Korea should be able to compete fairly and without discrimination, and that digital-sector searches, audits and fines had made doing business difficult. [ 1 , 2 , 3 ]
  • Steel called China the biggest threat in the Indo-Pacific. [ 4 , 6 , 7 ]
  • Brunson said North Korea-Russia defence cooperation is dangerously deepening and that training must continue through the year, not only in the two annual combined exercises. [ 3 , 4 ]
  • The Foreign Ministry said on 22 October that disagreements between states need managing, that it understood Steel to mean both sides are working toward a stronger alliance, and that it would refrain from commenting on her assessment of China. [ 6 , 7 ]

Still unclear

  • Which company Steel meant when she cited searches, audits and fines. She did not name a company; Hankook Ilbo said her remarks were interpreted as referring to Coupang, but this is the outlet's reading.
  • What specifically lies behind the 'turbulence'. Dong-A Ilbo linked it to wartime operational control transfer, cracks in intelligence cooperation and delayed investment in the US, and Korea Economic Daily listed further disputes; these are the outlets' readings, not stated in Steel's quoted remarks.
  • How strongly Steel framed China as a threat. Dong-A Ilbo's first report quotes her as saying China is 'sometimes' the biggest threat in the Indo-Pacific, while Yonhap and Dong-A Ilbo's later piece quote her without that qualifier.

What local media are saying

Business mediaBusiness outlets reported Steel's turbulence and China remarks, her call for fair treatment of US firms, and Brunson's comments on North Korea, Russia and year-round training. Dong-A Ilbo read her words as a request for Korea to join containment of China. Hankook Ilbo tied her digital-sector remarks to Coupang. Korea Economic Daily's editorial said the government and ruling party should move quickly to improve ties with the US. [ 1 , 2 , 3 , 4 , 5 , 7 ]
Official sourcesYonhap, citing a Foreign Ministry official, reported that Seoul called the alliance the axis of its diplomacy, said disagreements need managing, read Steel as aiming for a stronger alliance, and avoided commenting on her China assessment. [ 6 ]

Timeline, local time

  1. On 21 October, Dong-A Ilbo published its first report on Steel's remarks at the AMCHAM luncheon. [ 1 ]
  2. On 21 October, Newsis reported her call for fair competition for US firms and her comments on North Korea talks. [ 2 ]
  3. On 21 October, Hankook Ilbo reported her 'turbulence' remark and Brunson's comments. [ 3 ]
  4. On 22 October, Yonhap reported the Foreign Ministry's response. [ 6 ]