Seoul, Sept 27 (Reuters) — South Korea cannot provide the $350 billion upfront investment in the United States that former President Donald Trump has suggested as part of a tariff-cutting deal, a top presidential adviser said on Saturday, stressing that such a move could destabilize the country’s economy.
In July, Washington and Seoul reached a preliminary agreement to reduce U.S. tariffs on South Korean goods from 25% to 15%. Under the deal, South Korea pledged $350 billion for U.S. projects, but Seoul clarified that the investment would come in the form of loans, loan guarantees, and equity, not direct cash.
Trump, however, claimed this week that South Korea would provide the funds “upfront,” alongside similar contributions he said were promised by Japan. He described the payments as a major boost to the U.S. economy.
South Korea’s National Security Adviser Wi Sung-lac dismissed Trump’s remarks on Channel A News television, saying:
“We are not able to pay $350 billion in cash. This is not a negotiating tactic, but objectively and realistically beyond our capacity.”
President Lee Jae Myung, who visited Washington last month, has warned that without financial safeguards such as a currency swap, Seoul’s foreign exchange reserves of $410 billion would be severely strained if forced to make such a massive outlay.
Talks to formalize the trade deal have stalled amid U.S. demands for greater control over the pledged funds. Wi said Seoul was exploring alternatives and hoped to finalize discussions at the upcoming Asia-Pacific Economic Cooperation (APEC) summit, which South Korea will host next month and Trump is expected to attend.
The Author
Discover more from News Network Plus
Subscribe to get the latest posts sent to your email.
