Korea solidified its stature as a regional power broker after successfully hosting the 2025 APEC summit in Gyeongju, with 21 member economies adopting the landmark Gyeongju Declaration on November 1. The summit established artificial intelligence and demographic changes as central pillars of future Asia-Pacific cooperation, marking the first time both the United States and China jointly endorsed an AI agreement.
President Lee Jae Myung navigated complex negotiations to broker consensus among member economies representing 61% of global GDP and 49% of world trade. The declaration addressed pressing regional challenges while calling for strengthened economic integration amid rising protectionism and intensifying U.S.-China rivalry.
The summit delivered major diplomatic breakthroughs for Korea-U.S. relations. President Trump approved Korea’s plan to build its first nuclear-powered submarine during their Wednesday meeting, with construction set for Philadelphia shipyards. This unprecedented approval places Korea among a select group of nations possessing nuclear submarine technology, marking what experts called “a historic turning point in alliance cooperation”.
The leaders also finalized a phased $200 billion investment agreement, including $20 billion annually over a decade and a separate $150 billion shipbuilding package dubbed “Make American Shipbuilding Great Again”. In return, the Trump administration agreed to reduce tariffs on Korean exports from 25% to 15%.
Nvidia CEO Jensen Huang committed 260,000 high-end graphics processing units to Korean firms during the APEC CEO Summit, signaling renewed confidence in Korea’s AI ambitions.
Lee demonstrated diplomatic dexterity by balancing competing demands from major powers. His meetings with Chinese President Xi Jinping reaffirmed economic ties while addressing Beijing’s concerns over nuclear nonproliferation. The summit with Japanese Prime Minister Sanae Takaichi focused on forward-looking cooperation, deliberately avoiding historical disputes.
The Gyeongju Declaration launched two landmark initiatives: the APEC AI Initiative and the APEC Collaborative Framework for Demographic Changes. Lee emphasized Korea’s vision for “AI-Based Society for All,” where technological benefits reach globally.
China will host the next APEC summit in Shenzhen in November 2026, as Lee formally transferred the chairmanship to President Xi following the declaration’s adoption.
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