Korea US trade deal negotiations continue as leaders discuss investment and tariff issues. President Lee Jae Myung met Treasury Secretary Scott Bessent in New York during the UN General Assembly. Both sides emphasized that the deal must remain commercially reasonable and mutually beneficial. Consequently, the Korea US trade deal focuses on balancing investment commitments with sustainable economic policies. Moreover, officials stressed that the agreement must protect South Korea’s financial stability.
President Lee highlighted that South Korea’s $350 billion investment in US projects must proceed while minimizing risks to Seoul’s economy. The US offered a tariff reduction on most South Korean goods, which Seoul views as a key incentive. Meanwhile, the US demanded upfront equity-style cash investment, while South Korea preferred loans and guarantees to reduce immediate cash flow pressure. Therefore, the Korea US trade deal negotiations aim to find a compromise that satisfies both countries’ priorities.
Officials warned that South Korea could face a severe shortfall in US currency reserves if the deal involved an upfront cash infusion. President Lee cautioned that such a scenario could trigger an economic crisis similar to the 1997 Asian financial crisis. Consequently, the Korea US trade deal discussions include a potential new US currency swap arrangement. However, Seoul stressed that a swap alone cannot resolve the ongoing negotiation gridlock. Leaders must agree on how to define cash flow and investment structures effectively.
Kim Yong-beom, director of national policy at the presidential office, explained that South Korea wants cash flow to include loans, guarantees, and other investments. The US defines cash flow more like equity. Therefore, the Korea US trade deal seeks a compromise on defining cash flow to satisfy both countries. In addition, Lee and Bessent discussed investor relations and the importance of maintaining international confidence in the deal.
Bessent also adjusted his schedule to meet Lee personally instead of attending an investor summit in New York. Leaders emphasized frequent engagement and open dialogue to ensure progress. Furthermore, both sides highlighted that a balanced agreement will strengthen long-term economic and trade relations. Consequently, the Korea US trade deal remains a critical priority for Seoul’s global economic strategy.
