South Korea unable to pay US$350 billion in cash under trade pact
[SEOUL] South Korea cannot provide the US with US$350 billion in cash as suggested by Washington under a deal to lower tariffs, a senior official said.
“Our position is not a negotiating tactic,” National Security Adviser Wi Sung-lac said in a Channel A News television interview on Saturday (Sep 27) evening. “It is objectively and realistically not a level we are able to handle,” he added. “We are not able to pay US$350 billion in cash.”
Seoul and Washington agreed in July to a US$350 billion investment pledge as part of a broader trade deal to lower US tariffs to 15 per cent from 25 per cent, but the two sides remain divided over how it should be structured.
South Korean officials are seeking loans and a bilateral currency swap arrangement with the US to soften the economic impact, noting that the sum represents more than 80 per cent of its foreign reserves.
US Commerce Secretary Howard Lutnick has reportedly told South Korean officials that Washington prefers the investment in cash rather than loans. US President Donald Trump recently described the contribution as “up front”.
Wi said the government is exploring alternatives and hopes for progress when the two nations’ leaders meet at the Apec Summit in Gyeongju next month.
Separately, South Korea’s Finance Minister Koo Yun-cheol told reporters on Saturday that he has concluded talks with the US on the exchange rate and will announce details soon, Yonhap News reported, noting that the discussions are separate from currency swap negotiations.
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