Seoul has pushed back firmly against President Donald Trump’s demand that a promised $350 billion investment in the United States be paid upfront, with a top presidential adviser warning the immediate cash outlay could trigger a financial crisis.
The investment is tied to a deal that would cut U.S. tariffs from 25% to 15%. National Security Adviser Wi Sung-lac stated on Saturday that the amount is “objectively and realistically not a level we are able to handle.” He added, “We are not able to pay $350 billion in cash.”
South Korea has maintained since the deal was first shaken hands on in July that the $350 billion was structured as a combination of loans, loan guarantees, and equity, spread over time, not an immediate lump-sum payment.
President Lee Jae Myung had previously indicated that an upfront outlay would be highly precarious for the nation, whose foreign exchange reserves stand at about $410 billion.
However, President Trump this week touted the sum, stating South Korea would provide the investment “upfront.”
Wi confirmed that Seoul’s position is not a “negotiating tactic” but a financial necessity.
Officials indicated that talks to formalize the trade deal are currently at a deadlock.
South Korea is now “discussing alternatives” and hopes to finalize the agreement during the Asia-Pacific Economic Cooperation (APEC) summit next month, which President Trump is expected to attend.
