South Korea cannot pay $350 billion in upfront investment in the United States as requested by President Donald Trump.
Instead, Seoul is looking for different solutions, according to the country’s presidential adviser. Following a deal in July to lower U. S. tariffs from 25% to 15%, South Korea indicated that the investment would involve loans, loan guarantees, and equity, rather than direct cash.
Trump has claimed that South Korea would provide the investment “upfront,” but South Korean officials warn that such a cash payment could lead to a financial crisis for their economy. National Security Adviser Wi Sung-lac stated that paying $350 billion in cash is not feasible and affirmed their position is realistic, not a negotiating tactic.
South Korea’s discussions with the U. S. about the trade deal have reached an impasse due to concerns over U. S. control of the funds. President Lee Jae Myung highlighted the risks without safeguards like a currency swap and mentioned that talks aim to conclude at the upcoming APEC summit next month, which Trump is expected to attend.
With information from Reuters
