US President Trump Orders Substantial Reduction in Joint Drills with South Korea - ForexCracked
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US President Trump Orders Substantial Reduction in Joint Drills with South Korea

Published Aug 19, 01:48 UTC
Impact
8/ 10, high
JPY coverage tone
-0.2slightly negative
KRW coverage tone
-0.3negative
Corroboration
3independent organizations
Market reaction Live, FXC rate feed
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USDKRW
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  • Donald Trump orders “substantially reduce” US-South Korea military drills.
  • Cites cost, North Korea relations, and Seoul’s stance on Iran.
  • South Korea confirms Ulchi Freedom Shield will be cut by about half.

President Donald Trump has instructed the Pentagon to “substantially reduce” joint military exercises with South Korea, an announcement made via social media on Sunday. Trump cited the financial cost of the drills, the signal they send to North Korea, and his “very good relationship” with leader Kim Jong Un as primary reasons. He also expressed dissatisfaction with Seoul’s perceived lack of support for U.S. operations against Iran [STORY_ID: e89da602-b16a-4392-aa40-d25d7e9a1252]. Following this directive, South Korea’s military confirmed on Wednesday that it would cut an annual joint exercise, the Ulchi Freedom Shield, by about half. This decision comes as a 10-day joint exercise involving some 18,000 South Korean troops was scheduled to commence, and amidst reports of Trump seeking a summit with Kim Jong Un this fall.

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