Washington has proposed 'alternative' to $350 billion cash investment, Seoul's top envoy says
Published: 13 Oct. 2025, 18:55
![Minister of Foreign Affairs Cho Hyun answers questions from lawmakers during a parliamentary audit of the Foreign Ministry at the National Assembly in Yeouido, western Seoul, on Oct. 13. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2025/10/13/f33013b3-5049-4757-a5af-fd1f773dd3ac.jpg)
Minister of Foreign Affairs Cho Hyun answers questions from lawmakers during a parliamentary audit of the Foreign Ministry at the National Assembly in Yeouido, western Seoul, on Oct. 13. [NEWS1]
Minister of Foreign Affairs Cho Hyun said Monday that the United States has “come up with a new alternative” regarding Korea’s planned $350 billion investment in the United States, following Seoul’s reluctance to accept the Trump administration’s demand for a full cash injection.
Cho’s remarks suggest that Washington has responded to a revised proposal from the Korean government after rejecting the initial U.S. terms. He also said that U.S. President Donald Trump may visit Korea later this month for a Korea-U.S. summit in Gyeongju on the sidelines of the upcoming Asia-Pacific Economic Cooperation (APEC) summit.
Speaking before the National Assembly’s Foreign Affairs and Unification Committee on Monday, Cho said, “If we make the entire $350 billion investment as a direct cash investment, it could immediately cause foreign exchange issues and have a serious impact on our economy.”
“We have explained these problems in detail to the U.S. side, and they have now come up with a new alternative, which we are currently reviewing,” he continued, without disclosing what the alternative entails.
Cho added that Seoul is continuing negotiations with Washington as “a full cash investment would require parliamentary approval.”
A presidential office official said the Korean government “submitted a revised plan related to the financial package in September and received a partial response from the U.S. side.”
Earlier this month, director of national policy Kim Yong-beom told the JoongAng Ilbo that “a detailed and constructive revised proposal was sent to the United States, and we are still waiting for a specific reply.” The latest remarks suggest Washington has since responded.
Cho also disclosed that Washington had changed its position from the initial proposal. “When the United States first mentioned the $350 billion, the package included not only direct investment but also loans and loan guarantees,” he said. “Later, it was changed to a full direct investment, but we have maintained that we cannot accept that.”
![U.S. President Donald Trump listens to Israeli Prime Minister Benjamin Netanyahu during a joint press conference in the State Dining Room of the White House in Washington on Sept. 29. [AFP/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/10/13/34ca85ea-7e4f-45bf-ae1f-200819b2a332.jpg)
U.S. President Donald Trump listens to Israeli Prime Minister Benjamin Netanyahu during a joint press conference in the State Dining Room of the White House in Washington on Sept. 29. [AFP/YONHAP]
In a briefing late last month, Kim similarly said, “We initially expected most of the $350 billion to consist of loans and guarantees, with only a small portion as direct investment. However, the memorandum of understanding that the United States sent us was quite different from that expectation.”
Cho said Seoul will continue talks until the expected Korea-U.S. summit later this month, adding, “We will do our utmost to resolve this issue before the summit takes place.”
He also noted that Trump “is unlikely to attend the main APEC sessions” scheduled for Oct. 31 to Nov. 1, but said both the Korea-U.S. and U.S.-China summits are “likely to take place in Gyeongju.”
The Foreign Ministry later announced in a press release that Trump “is expected to visit Korea during the APEC week and attend events as his schedule allows.”
According to diplomatic sources, Trump is likely to make a two-day visit to Korea from Oct. 29, following trips to Malaysia on Oct. 26 to 27 for the Asean summit and Japan on Oct. 27 to 29. Trump earlier said on Friday that he would visit Korea regardless of whether a U.S.-China summit takes place.
However, questions have been raised over whether it was appropriate for Korea's Foreign Ministry to disclose Trump’s visit and the potential summit before the White House made an official announcement. The ministry’s reference to “APEC week” was also seen as an indication that the specific schedule remains under discussion.
Separately, when Rep. Kim Seok-ki of the People Power Party asked about countermeasures against a rise in violent crimes targeting Koreans in Cambodia, Cho said, “We are dispatching personnel to support the return of all affected nationals by air.”
According to the Foreign Ministry, 330 cases of confinement were reported by Korean nationals in Cambodia from January to August this year.
Lawmakers from both ruling and opposition parties criticized the government’s response.
“If 300 to 500 Korean citizens have been kidnapped and are out of contact in a foreign country, the government should send the presidential aircraft if necessary,” said Rep. Yoon Hu-duk of the Democratic Party.
Kim Seok-ki also urged Cho to “visit Cambodia with the National Police chief and establish an on-site task force.” The ambassadorial post in Cambodia remains vacant.
![U.S. President Donald Trump, left, greets Korean President Lee Jae Myung outside the West Wing of the White House in Washington on Aug. 25. [UPI/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/10/13/b61104e4-c486-484d-b049-0a5261e92f0c.jpg)
U.S. President Donald Trump, left, greets Korean President Lee Jae Myung outside the West Wing of the White House in Washington on Aug. 25. [UPI/YONHAP]
During the same session, Cho defended United Nations Ambassador Cha Ji-hoon, whose appointment has been criticized as unqualified, saying, “He went through a strict vetting process, and I attended a meeting in New York that he chaired.”
Cho also addressed criticism that the government demanded “excessive protocol” during former President Yoon Suk Yeol’s state visit to the Netherlands in 2023.
“There were some excesses,” he admitted. “Since taking office, I have stressed that the Foreign Ministry must simplify and rationalize diplomatic protocol.”
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK HYUN-JU [[email protected]]
with the Korea JoongAng Daily
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