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1h ago

Seoul Rejects Upfront $350 Billion as FX Deal With U.S. Nears Announcement

Officials cite crisis risk without swap backstops, setting APEC as the next window for a tariff-investment compromise.

U.S. President Donald Trump and South Korean President Lee Jae Myung meet in the Oval Office at the White House, in Washington, D.C., U.S., August 25, 2025. REUTERS/Brian Snyder/File Photo
Presidential spokesperson Kang Yu-jung holds a press briefing at the presidential office in Yongsan, central Seoul, on Sept. 28, 2025, over the recent fire at the state data center in the central city of Daejeon. (Yonhap)
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Overview

  • National Security Adviser Wi Sung-lac said South Korea cannot pay the $350 billion in cash, rejecting President Trump's "upfront" characterization and calling the stance a financial necessity, not a tactic.
  • Finance Minister Koo Yun-cheol said a foreign-exchange agreement with the United States has been concluded and will be announced soon, with officials indicating it is separate from any currency swap arrangement.
  • The presidential office said Washington agreed South Korea is not a currency manipulator, clarifying recent FX talks were distinct from negotiations on the tariff-linked investment package.
  • Working-level negotiations remain stalled over payment structure, U.S. control of funds, profit-sharing, and FX safeguards, with Trump pushing for cash upfront and Korean officials warning of crisis risk given roughly $410 billion in reserves.
  • Reports said U.S. officials pressed for more cash and a slightly larger pledge in line with Japan’s deal, a claim Korean officials have not confirmed, as Seoul targets the late-October APEC summit for possible resolution.