President Lee Jae Myung’s refusal to join the Iran war will test whether Seoul can keep the Hormuz dispute from weakening its position in negotiations over South Korea’s $350 billion U.S. investment package.

Lee has ruled out sending troops or military assets to take part in the fighting while leaving room for measures to protect Korean shipping, energy supplies and citizens around the Strait of Hormuz.

The two governments continue to negotiate the economic and security issues separately. But the talks are unfolding inside the same political relationship at a time when Washington is asking Seoul for greater support on