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Trump repeats claim Korea will pay $350 billion 'upfront' despite unfinalized trade deal

Published: 16 Oct. 2025, 09:43

President Donald Trump speaks during an event in the Oval Office at the White House on Oct. 15, in Washington. [AP/YONHAP]

U.S. President Donald Trump reiterated his claim that Korea agreed to pay $350 billion "upfront" as part of a trade deal with the United States.

The deal between Korea and the United States has yet to be finalized, but Trump brought up Korea and Japan in a White House press conference on Wednesday as he sought to underscore the legitimacy of tariffs ahead of a Supreme Court ruling on his reciprocal tariff policy.

“They've all signed [...] Japan, South Korea,” Trump said. “I mean, South Korea — $350 billion upfront. Japan — $650 billion,” he added while listing what he said were the achievements of his tariff policy. Trump also emphasized that tariffs are essential to the U.S. economy and security and that without tariffs, there is no national security.

Korea reached a broad agreement with the United States at the end of July, but the deal remains unsigned due to disagreements over the size and timing of the investments. In Japan’s case, the investment amount was previously reported to be $550 billion, raising the possibility that Trump misspoke.

Trump made a similar claim on Sept. 25 that Japan is paying $550 billion and Korea $350 billion.

“If we are not allowed to use what other people use against us, there is no defense. It would be a disaster for America,” Trump said during Wednesday's press conference, citing the EU's agreement to import U.S. cars and agricultural products after tariff negotiations.

“Tariffs are a very important tool for our defense, our national security,” he said. “If we don’t win that case, we will be a weakened, troubled financial mess for many, many years to come.”

U.S. Treasury Secretary Scott Bessent speaks as he and U.S. Trade Representative Jamieson Greer hold a press conference on the sidelines of the IMF/World Bank annual meetings in Washington, D.C., U.S., Oct. 15, 2025. [REUTERS/YONHAP]

U.S. Treasury Secretary Scott Bessent thinks that "differences can be resolved" regarding the two governments' different ideas on the tariff deal.

"We are in discussion now, and I would expect something in the next 10 days," the secretary said during a press meeting, responding to a question from Yonhap News Agency about whether the two countries can bridge their gaps over Korea's investment package, which was pledged as part of a bilateral framework trade deal struck in July.

Asked if the United States can provide a currency swap arrangement as requested by Korea, Bessent said that currency swap issues are not under the purview of his department.

"The Treasury [Department] does not provide a currency swap [...] That is the Federal Reserve," he said. "If I were the Federal Reserve chair, and I'm not, Korea would already have a currency swap facility as with Singapore."

He did not elaborate on why he mentioned the Singapore case. In March 2020, the Monetary Authority of Singapore announced the establishment of a $60 billion swap facility with the U.S. central bank.

During trade negotiations with Washington, Seoul has demanded financial safeguards, such as a currency swap arrangement, out of concern that Korea's massive direct cash investment, as initially demanded by the United States, could trigger a crisis akin to the Asian financial meltdown in the late 1990s.

Seoul wants its investment in the United States to come mostly in the form of credit guarantees and loans, with its direct equity investment accounting for around 5 percent of the total. It also requested that the United States enable Korea to be involved in deciding where to invest for its investment package based on "commercial rationality."

A 3D-printed miniature model of U.S. President Donald Trump, the Korean flag and the word ″Tariffs″ are seen in this illustration taken on July 23. [REUTERS/YONHAP]

During a CNBC forum earlier in the day, Bessent said that the United States is about to "finish up" trade negotiations with Korea, noting that the two sides are ironing out the details as "the devil is in the details."

Upon arrival in the United States, Korea's Finance Minister Koo Yun-cheol said that trade talks between the two countries are at a fast-paced coordination stage, hinting that progress is being made.

Negotiations between Seoul and Washington are expected to accelerate this week as top Seoul officials are expected to meet senior U.S. negotiators.

Koo is likely to meet with Bessent as he plans to attend meetings of the Group of 20 finance ministers and the annual gatherings of the International Monetary Fund and World Bank in Washington this week.

Kim Yong-beom, Korea's presidential chief of staff for policy, and Industry Minister Kim Jung-kwan are set to visit Washington for talks with U.S. Commerce Secretary Howard Lutnick. Trade Minister Yeo Han-koo will also fly to Washington on Wednesday. He is expected to meet U.S. Trade Minister Jamieson Greer.

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 BAE JAE-SUNG, YONHAP [[email protected]]