 "South Korea says it cannot pay $350 billion in US trade deal, seeks alternatives")
South Korea said it cannot provide the $350 billion investment upfront in the United States as President Donald Trump suggested and is seeking alternative solutions, a presidential adviser said on Saturday.
Following a July handshake deal to lower US tariffs to 15 per cent from 25 per cent, South Korea had pledged $350 billion toward US projects, but the investment was planned in the form of loans, loan guarantees, and equity.
Trump this week said South Korea would provide the amount “upfront,” despite Seoul warning that such a payment could push Asia’s fourth-largest economy into a financial crisis.
“The position we’re talking about is not a negotiating tactic, but rather, it is objectively and realistically not a level we are able to handle,” South Korea’s National Security Adviser Wi Sung-lac told Channel A News. “We are not able to pay $350 billion in cash.”
South Korea has also resisted US demands for control over the funds, and officials say talks to formalise the trade deal are at a deadlock.
On Thursday, Trump highlighted the sums brought in by his tariffs, saying: “We have in Japan it’s $550 billion, South Korea’s $350 billion. That’s upfront.”
President Lee Jae Myung told Reuters last week that without safeguards such as a currency swap, making such a massive outlay could trigger a crisis, given South Korea’s $410 billion in foreign exchange reserves.
Wi said the government is exploring alternatives and hopes to finalise the trade deal at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea next month, which Trump is expected to attend.
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