The Wall Street Journal (WSJ) reported on the 25th (local time) that U.S. Commerce Secretary Howard Lutnick is pressuring the Korean side in trade talks to increase its investment in the United States beyond the $350 billion (493 trillion won) verbally agreed to in Jul.
According to the WSJ, Minister Lutnick, in a closed-door setting, asked Korean officials to raise Korea's investment in the United States slightly so that it would come a bit closer to Japan's $550 billion (775 trillion won) investment in the United States.
He also said the Trump administration wants a higher share of Korea's U.S.-bound investment funds to be provided in cash rather than loans. President Trump, while signing an executive order at the White House that day related to the TikTok settlement with the Chinese video platform, also said of Korea's U.S.-bound investment money, "That is prepaid."
President Lee Jae-myung said in a Reuters interview, "If, without a currency swap, we withdraw $350 billion in the manner the United States demands and invest the entire amount in cash in the United States, Korea will face a situation like the 1997 foreign exchange crisis," already signaling reluctance toward a cash investment method.
In Jul., Korea agreed with the United States to lower reciprocal and auto tariffs from the existing 25% to 15% in return for investing $350 billion in the United States. As this was only a verbal agreement, the two sides are coordinating details. However, Korea and the United States are divided over the method of investing in the United States.
A White House official told the WSJ that while the United States is making fine-tuning adjustments to its trade deal with Korea, there is nothing that "dramatically departs" from elements of the Trump administration's demands that have already been agreed.
The WSJ pointed out that how the trade agreement between the Trump administration and Korea is concluded is a key barometer for assessing the broad tariff negotiations the United States is conducting with dozens of countries.