Seoul: South Korean Industry Minister Kim Jung-kwan stated that the United States has shown indications of relaxing its demand that Seoul fulfill its entire $350 billion investment commitment in cash. This development suggests substantive progress in the ongoing trade negotiations between the two nations.
According to Yonhap News Agency, Minister Kim mentioned that the U.S. is no longer insisting on the full cash payment for the $350 billion investment. He emphasized that if Washington had maintained its stance, the negotiations would have likely collapsed. However, the U.S. has, to a significant extent, accepted South Korea's perspective on the matter.
Kim's visit to the U.S. last week was part of follow-up discussions concerning the bilateral framework tariff agreement established in late July. During his visit, he engaged in talks with U.S. Commerce Secretary Howard Lutnick and other officials to address differences over Korea's investment pledge, particularly concerning financing methods and profit distribution.
He highlighted that the primary challenge during the talks was related to the foreign exchange market, but both countries have reached a broad consensus on this issue. Previously, U.S. President Donald Trump stated that the investment should be made "upfront," while South Korean officials argued for the investment to finance projects rather than as a cash payment. They also advocated for financial safeguards such as a currency swap arrangement.
Kim's statements were consistent with those of presidential chief of staff for policy Kim Yong-beom, who noted that substantial progress had been made on most issues, although some areas still require coordination. The industry minister also mentioned that both sides aim to finalize the tariff deal before the Asia-Pacific Economic Cooperation (APEC) summit in Korea at the end of the month.
President Trump is scheduled to visit Korea from October 29-30 for the APEC summit and will hold summit talks with President Lee Jae Myung. Minister Kim concluded by stating that efforts are being made to find a mutually acceptable range for the agreement.