SEOUL, Oct. 17 (AJP) – Seoul held firm against U.S. President Donald Trump’s demand that Korea’s pledged $350 billion investment be made in upfront cash, expressing confidence that Washington’s financial and trade officials understand Korea’s vulnerability to large foreign capital outflows.
Deputy Prime Minister and Finance Minister Koo Yun-cheol said U.S. officials have shown understanding of Korea’s position.
“I met Secretary Scott Bessent at the G20 meeting. He understands that stabilizing South Korea’s foreign exchange market benefits both countries,” Koo told reporters in Washington on the sidelines of the G20 Finance Ministers and Central Bank Governors Meeting, adding that Bessent was interested in cooperating with Korea to ensure market stability.
Koo said Bessent recognizes the challenges Korea faces regarding the upfront payment issue and likely discussed the matter with U.S. Commerce Secretary Howard Lutnick.
When asked if Washington may drop the upfront payment demand, Koo replied that the U.S. side “understands our position, which could be favorable for us.”
He emphasized that while Korea seeks to accelerate tariff negotiations — ideally by the Asia-Pacific Economic Cooperation (APEC) summit — any agreement should not compromise national interests. He pointed to the 25 percent U.S. tariff on automobiles as a key area needing prompt attention but noted that progress depends on mutual understanding and flexibility.
On a possible currency swap facility, Koo said the instrument is one option to maintain market stability, though it is not the sole focus at this time.
Soon after, Bessent told CNBC that Washington was “about to finish up with Korea,” echoing Seoul’s stance on the need for a currency swap arrangement to ease exchange rate volatility amid the planned investment outflow roughly equivalent to Korea’s foreign exchange reserves.
Trump, however, reiterated that he expects Korea to make the full $350 billion payment upfront.
Meanwhile, other senior Korean policymakers in Washington — Industry Minister Kim Jung-kwan and Presidential Policy Chief Kim Yong-bum — met separately with Russell Vought, director of the Office of Management and Budget (OMB), which oversees U.S. shipbuilding efforts. The officials highlighted Korea’s role in the proposed investment package under the slogan “Make American Shipbuilding Great Again.”
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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