GYEONGJU, South Korea - US President Donald Trump said Wednesday that the United States has reached a deal on trade with South Korea, according to Yonhap news agency.

Trump arrived in Gyeongju, about 330 km southeast of the South Korean capital Seoul, earlier in the day to hold summit meetings, including the one with South Korean President Lee Jae-myung Wednesday afternoon ahead of the Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting.

Trump appeared at a dinner hosted by Lee, and was asked about whether he had reached a trade deal with Lee. "We did," the US president said, without providing further details.

Lee said that South Korea will raise its defense budget and develop its defense industry to improve its defense strength so as to ease US defense expenditures in their defense alliance, according to a statement from the South Korean presidential office.

ALSO READ: APEC members bank on HK’s ‘superconnector’ role in free trade network

Meanwhile, South Korea will enlarge its investment in the United States and expand its imports from the United States to deepen South Korea-US alliance.

Trump said that the US side will continue to keep a good relationship with South Korea and work jointly to solve the Korean Peninsula issue. 

South Korea will host the 32nd APEC Economic Leaders' Meeting in Gyeongju from Oct 31 to Nov 1.