Trump Orders Pentagon to Substantially Reduce Joint Military Drills With South Korea While Praising Kim Jong Un

President Donald Trump said he has directed the Pentagon to substantially reduce joint military exercises with South Korea, a significant scaling back of military cooperation with a key longtime ally. Trump made the announcement on August 16, 2026, framing the move as a deliberate policy instruction to defense leadership. Alongside the directive, Trump offered praise for North Korean leader Kim Jong Un, a pairing that drew immediate attention given the geopolitical sensitivities involved.

The news hit South Korean equity markets, with the iShares MSCI South Korea ETF, traded on NYSE Arca under the ticker EWY, flagged by market watchers as a direct exposure to the development. The reduction in joint drills has long been a demand of Pyongyang and a point of tension in U.S. alliance management in the region, making the move a notable shift in American defense posture on the Korean Peninsula.