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South Korea want's to sign peace treaty, Trump can't politically afford to allow this to flop and needs to sign as well, but in signing he needs to recognise North Korea as a Nuclear power, and pull back sanctions so the North and the South can trade again, which is a BIG part of the peace deal.
Trump already proved he was willing to fuck South Korea over with trade deals and turn a blind eye to China.. again.
South Korea certainly want the North to stop threatening them and the USA, BUT.. they certainly don't need North Korea to denuclearise when all that would mean is an invitation ticket to China to move in.
Complex times we live in.
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