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Seoul Rules Out $350 Billion Upfront Cash as Swap Prospects Dim and Tariff Talks Stall

South Korea seeks staged financing with FX backstops after rejecting a lump‑sum cash transfer.

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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U.S. President Donald Trump and South Korean President Lee Jae-myung talk to reporters before an Oval Office meeting at the White House on Aug. 25.

Overview

  • National Security Adviser Wi Sung-lac said paying the $350 billion in cash is unfeasible and confirmed talks remain at a deadlock over structure, control and profit-sharing.
  • Wi said he is not optimistic about securing a U.S. dollar swap line given precedent, though he expressed hope for a compromise as negotiators work toward the late-October APEC summit.
  • Finance Minister Koo Yun-cheol said Seoul and Washington reached a foreign‑exchange understanding to be announced soon, and officials said it is separate from swap discussions.
  • A presidential spokesperson said the U.S. agreed South Korea does not meet the criteria for a currency manipulator, even as President Trump has publicly insisted the $350 billion be provided "upfront."
  • Reporting indicates U.S. officials have pressed for more cash and a higher total citing Japan’s $550 billion pledge, while the won weakened past 1,400 per dollar and the Kospi fell on deal uncertainty.