Washington eases stance on upfront cash demand, trade minister says

Photo by Yonhap News — Minister of Trade Industry and Resources Kim Jung-kwan speaks to reporters at Incheon International Airport on Oct. 20, 2025. Yonhap

SEOUL, October 21 (AJP) - Washington is no longer pressing for a lump-sum cash payment for Seoul's pledge of a major investment in the U.S., which was agreed to in return for lowering reciprocal tariffs from 25 percent to 15 percent, a South Korean trade chief said on Monday.

Upon returning from his visit to the U.S., Trade Minister Kim Jung-kwan said the two sides had narrowed differences in the ongoing tariff-related talks including details on how to carry out and finance the investment pledge, with Washington stepping back from its demand for an all-cash, upfront payment.

"We are making last-minute efforts to find a range that would be acceptable [to both sides and tolerable for us]," he added.

His comments came after presidential policy chief Kim Yong-beom, who also returned from Washington, D.C. the previous day after meeting with U.S. Secretary of Commerce Howard Lutnick and other trade officials said, "Significant progress was made in negotiations with the U.S., as most issues have been settled."

Though some areas still require adjustments, he expressed optimism about reaching a deal to finalize trade talks before the upcoming Asia-Pacific Economic Cooperation (APEC) summit, which is scheduled to be held in the historic city of Gyeongju next week with many global leaders including U.S. President Donald Trump and Chinese President Xi Jinping in attendance.

South Korea hopes to pay only about five percent of the pledged investment in cash, with the rest covered through loans and credit guarantees.

Meanwhile, Trump said he expects the U.S. to reach a "great trade deal" with China during his upcoming meeting with Xi in South Korea, claiming that Washington has already struck "fair" deals with South Korea, Japan, and the EU.

"[With] South Korea, where I'll be meeting..... Xi, we worked out a very fair deal, and I expect we'll probably work out a very fair deal" with China, Trump said, adding, "It's going to be a great trade deal. It's going to be fantastic for both countries, and it's going to be fantastic for the entire world."

But it remains to be seen whether such a deal will be reached during the summit, as Beijing has yet to officially announce Xi's trip to South Korea, while Trump will make a brief stop here following a longer stay in Tokyo.

Lee Hugh