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4h ago

South Korea Says U.S. Foreign-Exchange Deal Reached as It Rejects Upfront $350 Billion

Seoul favors a financing-based structure, eyeing APEC next month to try to close the pact.

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
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Overview

  • Finance Minister Koo Yun-cheol said Seoul and Washington have reached a foreign-exchange agreement that will be announced soon, with Yonhap reporting it is separate from currency swap talks.
  • National Security Adviser Wi Sung-lac said South Korea cannot provide the $350 billion in cash upfront and is seeking alternative arrangements.
  • President Donald Trump described the Korean commitment as "upfront," contradicting Seoul’s stated plan to deliver funds via loans, guarantees, and equity.
  • South Korean officials say negotiations to formalize the tariff deal are at a deadlock because of U.S. demands for control over the pledged funds.
  • President Lee Jae Myung warned an upfront outlay could risk a crisis without safeguards such as a swap line, and Seoul is targeting the APEC summit next month for a possible resolution.