As tariff talks between the Korean government and the United States are struggling over a $350 billion (about 490 trillion won) investment fund issue, a poll on the 2nd showed that more than half of Koreans think large-scale cash-like investments are inappropriate even if the tariff rate cannot be lowered.
Embrain Public, KSTAT Research, Korea Research, and Hankook Research asked in the National Barometer Survey (NBS), conducted from the 29th of last month to the 1st of this month among 1,003 men and women aged 18 and older, "As detailed coordination on the $350 billion investment clause included in the U.S.-Korea tariff negotiation plan drags on, the current 25% U.S.-bound tariff rate is being applied; which stance do you agree with more?"
As a result, 55% responded that "even if the tariff rate cannot be lowered, given the state of our economy, cash-like direct investment is not appropriate," while 29% said that "it is appropriate to lower the tariff rate even if we make cash-like direct investments to meet U.S. demands."
The response that "cash-like direct investment is inappropriate even if the tariff rate cannot be lowered" was high among those in their 50s (68%) and 40s (67%). The response that "it is appropriate to lower the tariff rate even if we make cash-like direct investments" was relatively high among those in their 30s (42%) and 20s (40%).
Among Democratic Party of Korea supporters, 68% were negative about cash-like investment, and only 20% were positive. Among People Power Party supporters, 44% were positive about cash-like investment, and 40% were negative.
Earlier, U.S. President Donald Trump said at the White House on the 25th of last month (local time), "Thanks to trade deals, in one case we secured $950 billion (about 1,339 trillion won), an amount that had not been paid at all before," adding, "As you know, from Japan we get $550 billion (about 775 trillion won), and from Korea $350 billion. This is prepaid."
On Jul. 30, the United States and Korea agreed that the U.S. tariff rate imposed on Korea would be lowered from 25% to 15% in exchange for Korea making $350 billion in U.S.-bound investments. Korea aims to minimize equity investments and compose most of it as guarantees. However, the United States is demanding a method similar to the U.S.-Japan agreement, in which it receives cash from Korea, the United States decides where to invest, and the United States takes 90% of the investment profits. Korea is concerned that if it provides the $350 billion in cash to the United States as demanded, the foreign exchange risk would be significant.
The NBS survey was conducted through telephone interviews using 100% mobile virtual numbers, with a margin of error of ±3.1 percentage points at the 95% confidence level. The response rate was 15.6%. For details, refer to the National Election Survey Deliberation Commission website.