South Korea’s Finance Minister Koo Yun-cheol said it remains uncertain whether U.S. President Donald Trump will accept Seoul’s stance against a $350 billion upfront investment payment under the trade deal signed in July.
Speaking to reporters in Washington, Koo explained that such a massive one-time payment could destabilize Korea’s foreign exchange market and risk triggering conditions similar to the 1997 Asian financial crisis. He emphasized that while U.S. Treasury Secretary Scott Bessent understood Seoul’s concerns, it is unclear whether the president himself will be persuaded.
Koo urged Bessent to convey Korea’s position to other senior U.S. officials, including Commerce Secretary Howard Lutnick, stressing that any investment plan must balance market stability with trade commitments. “If the scheme requires a full upfront payment, it could create serious challenges for Korea’s currency market,” he warned.
The trade framework agreed in July included Seoul’s commitment to invest $350 billion in the United States in exchange for a reduction of tariffs on South Korean automobiles from 25% to 15%, but implementation has stalled as both sides continue to negotiate key financial terms.
