South Korea-US trade deal: Seoul says can’t ‘pay $350 bn in cash’; seeks alternative solution

South Korea has rejected US President Donald Trump’s claim that it will provide $350 billion in upfront cash as part of a deal to reduce American tariffs. Seoul clarified that the pledged funds would come in the form of loans, guarantees, and equity investments rather than a direct cash payment.

Earlier, President Trump told reporters that the money would arrive “upfront.” However, South Korea’s presidential adviser warned on Saturday that such a massive cash outflow would trigger a financial crisis, despite the country’s substantial foreign exchange reserves. Reuters reported that Seoul dismissed the US president’s interpretation as unrealistic.

Dismissing the claim, South Korea’s national security adviser, Wi Sung-lac, said, “The position we’re talking about is not a negotiating tactic, but rather, it is objectively and realistically not a level we are able to handle. We are not able to pay $350 billion in cash.” He made the remarks during an interview with Channel A News.

The two countries initially struck a handshake agreement in July to lower US tariffs on South Korean goods from 25% to 15%. As part of this understanding, Seoul pledged $350 billion for projects in the United States, but emphasized that the funds would be provided through loans, guarantees, and equity rather than a direct cash payment.

Meanwhile, South Korean President Lee Jae-myung also warned in an interview with Reuters that paying such a sum without financial safeguards—such as a currency swap—could push the country into crisis despite its $410 billion in foreign exchange reserves.

Negotiations to formalize the deal have currently stalled, with Seoul opposing Washington’s demands for control over the funds. South Korea hopes to resolve the matter at the upcoming Asia-Pacific Economic Cooperation (APEC) summit it is hosting next month, where President Trump is expected to attend.

Apart from South Korea, Trump also referred to a $550 billion deal with Japan. “We have in Japan it’s $550 billion, South Korea’s $350 billion. That’s upfront,” the US President said while touting the amount of money that tariffs would be bringing to Washington.

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