Momentum builds in Korea-U.S. trade negotiations

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Momentum builds in Korea-U.S. trade negotiations

Published: 16 Oct. 2025, 18:49 Updated: 16 Oct. 2025, 18:57

Audio report: written by reporters, read by AI

U.S. Treasury Secretary Scott Bessent, delivers remarks on the ″Game Plan for U.S. Investment″ on the sidelines of the International Monetary Fund and World Bank annual meetings in Washington on Oct. 15. [AFP/YONHAP]

Follow-up negotiations to a Korea-U.S. trade deal reached in late July appear to be nearing completion, as comments from top economic officials on both sides on Wednesday suggest rapid progress.

With a Korea-U.S. summit likely to take place on the sidelines of the APEC Economic Leaders’ Meeting in Gyeongju later this month, attention is focused on whether a final agreement will be announced then.

Asked whether the two sides could resolve differences over Korea’s implementation of its investment pledge in the United States, U.S. Treasury Secretary Scott Bessent said in a press briefing, “I’m sure the differences can be resolved.”

“We are in discussions now, and I would expect something in the next 10 days,” Bessent added, suggesting that the outcome of the trade talks could be announced within that time frame.

Earlier in the day, Bessent also said during a CNBC interview, “We are about to finish up with Korea,” adding, “The devil’s in the details, but we are ironing out the details.”

Korean Deputy Prime Minister and Finance Minister Koo Yun-cheol speaks to reporters upon arriving at Dulles International Airport in Washington on Oct. 16. [YONHAP]

Finance minister: ‘Talks are progressing rapidly’

Korean Deputy Prime Minister and Finance Minister Koo Yun-cheol, who arrived in Washington on Wednesday, echoed the optimism. Speaking with reporters at Dulles International Airport, he described the negotiations as being “in a stage of rapidly coordinated adjustments.”

On July 30, Korea and the United States reached a preliminary agreement in which the United States would lower reciprocal tariffs on Korean goods from 25 percent to 15 percent in exchange for $350 billion in Korean investment in the U.S. However, the two sides have since clashed over implementation specifics, particularly how the investment would be structured.

While Korea has proposed minimizing direct equity investment and instead offering the bulk in loans and guarantees, the United States has pushed for what has been described as a “blank check,” similar to a deal reached with Japan.

But momentum shifted as U.S. officials reportedly came to accept Korea’s concerns that a large-scale dollar investment could disrupt foreign exchange markets. Korea has also sought safeguards against financial instability, including a currency swap agreement — a mechanism where central banks exchange currencies at predetermined rates.

U.S. Treasury Secretary Scott Bessent looks on during a press conference with U.S. Trade Representative Jamieson Greer on the sidelines of thethe International Monetary Fund and World Bank annual meetings in Washington on Oct. 15. [REUTERS/YONHAP]

‘If I were Fed chair, Korea would already have a swap’

Bessent indicated the United States was considering alternatives to address Korea’s concerns.

Asked about the possibility of a swap agreement, Bessent noted that a decision would be up to the Federal Reserve, but said, “If I were Federal Reserve chair, and I'm not, Korea would already have a currency swap facility, as would Singapore.”

“The United States has shown a strong understanding of Korea’s currency market situation,” said Koo. “I think they’re likely to accept what we proposed.”

Although the $60 billion swap agreement between the United States and Singapore — cited by Bessent — differs from Korea’s request, both sides appear to agree on the need for a guardrail against shocks to the foreign exchange market.

Kim Yong-beom, right, the presidential chief of staff for policy, and Industry Minister Kim Jung-kwan, left, field questions from reporters at Incheon International Airport, west of Seoul, on Oct. 16, before their departure for Washington for trade talks with the United States. [KIM KYUNG-ROK]

The presence of Korea’s top economic and trade officials in Washington suggests a critical turning point in the talks.

Presidential Director of National Policy Kim Yong-beom and Minister of Trade, Industry and Energy Kim Jung-kwan were set to meet with U.S. Commerce Secretary Howard Lutnick on Thursday. Trade Minister Yeo Han-koo, who arrived in the United States on Wednesday, is continuing negotiations with Jamieson Greer of the U.S. Trade Representative (USTR).

Koo, attending the G20 Finance Ministers and Central Bank Governors’ Meeting and the annual meetings of the International Monetary Fund (IMF) and World Bank, also plans to meet with Bessent to discuss tariff issues.

U.S. President Donald Trump speaks ahead of a dinner to raise money for his ballroom extension in the East Room of the White House in Washington on Oct. 15. EPA/JIM LO SCALZO / POOL

‘$350 billion must be paid up front’

However, U.S. President Donald Trump continued to press Korea, insisting that the $350 billion investment must be paid “upfront.”

“They've all signed [...] Japan, South Korea,” Trump said. “I mean, South Korea — $350 billion upfront. Japan — $650 billion,” Trump said during a press conference Wednesday, touting his tariff policies.

Although Korea has agreed to invest $350 billion in the United States, it has yet to finalize the terms or uses of the investment. The amount agreed with Japan is $550 billion, not $650 billion, suggesting Trump may have misspoken or is applying pressure ahead of the final stretch of negotiations.

Observers believe the two countries are racing to finalize the deal before the APEC Economic Leaders’ Summit.

Kim Yong-beom, the presidential chief of staff for policy, and Industry Minister Kim Jung-kwan, field questions from reporters at Incheon International Airport, west of Seoul, on Oct. 16, before their departure for Washington for trade talks with the United States. [NEWS1]

“Trump’s planned visit to Korea is pushing both sides to focus on the trade talks,” said Kurt Tong, partner at The Asia Group, at a Korea Economic Institute seminar on the APEC Economic Leaders' Meeting on Wednesday. “We can expect progress. The Korea-U.S. trade deal will be very similar to the U.S.-Japan deal and will likely be a reasonable one.”

“We are seeing progress in security, investment, trade and technology cooperation,” said Ahn Se-ryeong, economic minister at the Korean Embassy in Washington. “When Presidents Lee Jae Myung and Trump meet later this month, both sides will have a lot to announce.”

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 KIM HYOUNG-GU [[email protected]]