Gyeongju, Oct 28 : South Korean President Lee Jae Myung faces high-stakes diplomacy as he hosts the Asia-Pacific Economic Cooperation (APEC) gathering this week in Gyeongju, with bilateral summit talks with US President Donald Trump set to take place over lingering security and trade issues.

This week's APEC gathering has drawn keen attention as Trump and Chinese President Xi Jinping are also set to meet in South Korea on the sidelines, while speculation has persisted over whether Trump will meet North Korean leader Kim Jong-un, Yonhap News Agency reported.

The main APEC Economic Leaders' Meeting will take place on Friday and Saturday, with eyes on whether member countries will adopt a joint declaration amid growing challenges to free trade and multilateralism.

Throughout the APEC week, global business leaders will convene in South Korea for major economic events, as the government aims to attract new investment through forums and outreach programs.

Lee plans to deliver a speech at the opening ceremony of the APEC CEO Summit on Wednesday and engage with business leaders.

Trump is expected to deliver a keynote address during the CEO Summit but is unlikely to participate in the main leaders' sessions, according to reports.

Hosting the APEC summit for the first time in 20 years gives Lee a rare opportunity to welcome the US and Chinese leaders on his home turf after less than five months in office.

Lee is scheduled to hold summit talks with Trump on Tuesday and with Xi on Saturday. Consultations are underway to arrange a meeting with Japan's new Prime Minister Sanae Takaichi on Thursday.

The stakes are particularly high for Lee's meeting with Trump as Seoul and Washington are in intense negotiations to narrow gaps over South Korea's USD 350 billion investment pledge, aimed at finalising a trade deal that would reduce US tariffs on Korean goods.

Whether the two sides can clinch an agreement in time for the summit remains uncertain as negotiations continue over key sticking points, including the financing of the investment package.

Wednesday's summit will mark Lee and Trump's second in-person meeting following their August talks at the White House.

Lee's first meeting with Xi -- the Chinese leader's first trip to South Korea in 11 years -- is expected to focus on advancing bilateral relations and regional security, including efforts to stabilise the Korean Peninsula.

Tensions with North Korea remain elevated after Pyongyang rejected Lee's outreach and deepened ties with Russia and China.

Their upcoming talks come as South Korea is seeking to stably manage ties with China while maintaining its close alignment with the U.S. amid the escalating rivalry between the two world powers.

On the sidelines, Lee is also scheduled to hold back-to-back meetings with leaders from Canada, the United Arab Emirates, Singapore and other nations to discuss practical cooperation, his office said.

Speculation has flared over a possible surprise meeting between Trump and North Korean leader Kim Jong-un.

While en route to Tokyo on Monday, Trump told reporters that he "would love to" meet Kim during his Asia trip, indicating his willingness to extend the trip if necessary. North Korea hasn't responded to Trump's latest dialogue overture.

National Security Adviser Wi Sung-lac said Sunday that he does not have information on the potential Trump-Kim meeting, but South Korea will be prepared should the possibility arise.

The third and last meeting between Trump and Kim in June 2019 was hastily arranged at the inter-Korean border village of Panmunjom, a day after Trump posted a social media message inviting Kim to the border.

/IANS