Seoul: The presidential office announced that the United States has shown a response to some revised proposals in ongoing trade discussions, potentially involving a $350 billion investment pledge from South Korea. This comes amid limited progress in the negotiations, which have focused on a framework deal aimed at reducing U.S. tariffs on South Korean goods.
According to Yonhap News Agency, South Korea and the U.S. have been negotiating the specifics of the $350 billion investment package, part of an agreement to lower U.S. tariffs from 25 percent to 15 percent. Seoul has insisted on a currency swap deal to prevent a financial crisis that could result from such a significant direct investment.
The presidential office revealed that the U.S. has suggested a "new alternative" in the talks. This follows Foreign Minister Cho Hyun's statement during a parliamentary audit that the government is considering an alternative proposal from Washington regarding the financing of the investment package.
"Our side submitted a revised proposal related to the financial package last month, and the U.S. side has responded to some parts," stated the office, declining to provide further details due to ongoing negotiations.
The negotiations between Seoul and Washington are centered on finalizing the investment package, which is linked to an agreement to reduce U.S. tariffs on South Korean goods. Previously, U.S. President Donald Trump mentioned that the investment would be made "upfront," while officials from Seoul have clarified that the pledge is meant to finance projects, not as a cash payment. They have called for financial safeguards, including a currency swap arrangement.
The South Korean government is reportedly working to adjust the proportion of direct cash investments in the proposed plan.