Korea reviewing new $350 bil. investment proposal, FM says
Foreign Minister Cho Hyun gives an opening speech during a parliamentary audit session at the National Assembly in southern Seoul, Monday. Yonhap
Korea is reviewing an alternative proposal laid out by the United States on how Seoul would finance the $350 billion investment package reached as part of tariff negotiations with Washington, Foreign Minister Cho Hyun said Monday.
Cho's remarks came as Seoul and Washington have been working to settle their differences on the details of the investment package to finalize a framework deal in July that called for lowering U.S. tariffs on Korean products from 25 percent to 15 percent.
U.S. President Donald Trump earlier said the investment package would be made "upfront," while Seoul officials have countered that the investment pledge was intended to finance projects rather than a cash payment, and called for safeguards to the deal, such as a currency swap.
During a parliamentary audit of his ministry, Cho said the U.S. has offered an alternative idea for the investment deal in response to Korea's recent proposal to revise it.
"If (we should put) all of $350 billion into direct investments in the U.S., this could cause a problem in the foreign exchange (market) and have serious repercussions on the economy," Cho said.
"So we explained all of the (potential) problems to the U.S. side, and they have come up with a new alternative solution," Cho said, adding they were in the process of reviewing the proposal.
Cho reiterated the stance Monday that Korea cannot make direct investments in the form of cash to Washington, noting the U.S. had initially included loans and guarantees in the investment plan.
Cho also said Korea has delivered to the United States its "strong" will to push for modernizing the alliance with Washington, hinting at Seoul's readiness to step up its defense posture.
"The U.S. side has vowed to reaffirm the ironclad security commitment and bolster bilateral cooperation in (Washington's move to provide) extended deterrence," he said.
U.S. President Donald Trump's administration seeks to "modernize" the decades-old alliance with Seoul in an apparent bid to ensure that U.S. forces stationed in Korea and assets can be mobilized for operations outside the Korean Peninsula to better deter threats from China.
Regarding the upcoming Asia-Pacific Economic Cooperation (APEC) summit in Korea in two weeks, Cho said if Trump visits the , it will mark reciprocal visits by the leaders of the two nations after President Lee Jae Myung traveled to Washington in August for a summit with Trump.
"As Chinese President Xi Jinping visits Korea for the APEC summit, we will take this opportunity to restore exchanges at the leadership level between Seoul and Beijing," Cho said.