South Korea Rules Out $350 Billion Cash Payment Under US Tariff Deal

South Korea has said it cannot provide a $350 billion cash payment to the US under President Donald Trump’s proposed tariff deal and is instead seeking alternative methods, Indian Express reported.

In July, both nations informally agreed to reduce US tariffs on South Korean goods from 25 per cent to 15 per cent.

At the time, Seoul committed $350 billion in US projects via loans, guarantees, and equity, but Trump insisted this week that the sum must be paid “upfront.”

South Korean National Security Adviser Wi Sung-lac clarified to Channel A News that South Korea’s stance is not a bargaining strategy but a financial reality.

“The position we’re talking about is not a negotiating tactic, but rather, it is objectively and realistically not a level we are able to handle. We are not able to pay $350 billion in cash," Wi said.

Negotiations have stalled as South Korean officials opposing Washington’s push for direct control over the pledged funds.

On Thursday, Trump claimed tariffs were generating major revenue, stating: “Japan has $550 billion, South Korea’s $350 billion. That’s upfront.”

South Korean President Lee Jae Myung cautioned last week that an upfront payment could destabilise South Korea’s economy, which holds around $410 billion in reserves, and called for safeguards like a currency swap to avert risks.

Wi, who is top aide to Lee, reiterated that no one would doubt South Korea’s position given the scale of the cash demand and confirmed discussions are underway to identify feasible alternatives.

He further stated that Seoul hopes to finalise the agreement at the APEC summit next month, which South Korea is hosting and Trump is expected to attend.

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