Washington: South Korea and the United States are making headway in their trade negotiations as they work to finalize details regarding Seoul’s $350 billion investment commitment, according to the country’s trade minister. This development follows a bilateral trade deal reached in July between the two nations.

According to Yonhap News Agency, Trade Minister Yeo Han-koo made these statements upon his arrival at an airport near Washington. He was accompanied by Presidential Chief of Staff for Policy Kim Yong-bum, Finance Minister Koo Yun-cheol, and Industry Minister Kim Jung-kwan. The officials are in Washington this week to hasten the negotiations with the United States.

Yeo informed reporters at Ronald Reagan Washington National Airport that progress is being made and emphasized the importance of achieving an outcome that aligns with national interests. U.S. Treasury Secretary Scott Bessent had earlier remarked that he expects a resolution to be reached within the next ten days. Yeo, however, noted that the focus remains on content and substance rather than adhering to an artificial deadline.

The potential summit between Korean President Lee Jae Myung and U.S. President Donald Trump at the upcoming Asia-Pacific Economic Cooperation summit in Korea could offer a beneficial opportunity to finalize the trade deal. Yeo highlighted efforts to leverage this opportunity effectively.

The framework trade deal agreed upon in July includes Seoul’s commitment to invest $350 billion in the U.S., with Washington agreeing to lower its tariffs on South Korean automobiles from 25 percent to 15 percent. However, differences over the implementation of the investment package have delayed the deal’s enforcement.

A significant sticking point is the method of funding the investment package. The U.S. has requested Korea to make a direct equity investment, but Korea has resisted, citing potential financial instability similar to the 1997 Asian financial crisis. Instead, Seoul proposes using credit guarantees and loans, with direct equity investment comprising only about 5 percent of the total. Additionally, Korea seeks involvement in investment decisions based on commercial rationality.

Treasury Secretary Bessent expressed optimism earlier in the day regarding the resolution of these differences. He indicated at a CNBC forum that negotiations with Korea are nearing completion.