Korea steps up pressure on US over tariffs, visa dispute

President Lee Jae Myung shakes hands with U.S. Treasury Secretary Scott Bessent before their meeting at Korea’s Permanent Mission to the United Nations in New York, Wednesday. Joint Press Corps

Korea is intensifying pressure on the United States over unresolved visa issues and stalled negotiations on a $350 billion investment package, signaling that Seoul will not yield to Washington’s demands without protecting its own interests.

Prime Minister Kim Min-seok said in an interview with Bloomberg on Thursday that Korean companies’ projects in the U.S. will remain in limbo until the visa issue is resolved.

“Without resolving the visa issue, meaningful progress is virtually impossible,” he said. His comments came after more than 300 Korean workers were detained in a raid at a Hyundai-LG Energy Solution battery plant construction site in Georgia earlier this month. The workers were released a week later.

Kim stressed that, although the projects have not been fully suspended, difficulties remain.

“Many workers will find it extremely difficult to enter or reenter the U.S. until this problem is settled," he said, adding that the visa dispute “has also cast a cloud over the $350 billion investment package agreed upon in July.”

He emphasized that workers and their families cannot be expected to return to the U.S. without firm guarantees of safety and legal protection.

President Lee Jae Myung, who is in New York for the United Nations General Assembly, conveyed Korea’s position directly to U.S. Treasury Secretary Scott Bessent.

During their meeting, Lee emphasized that discussions on the package must proceed “in a commercially rational way that benefits both countries.” He pointed out that, while Washington recently struck a deal with Tokyo, Korea differs from Japan in terms of economic scale, foreign exchange markets and financial infrastructure, calling for these differences to be reflected in the negotiations.

The investment fund was originally included in a wider agreement aimed at easing U.S. tariffs on Korean products. However, the two sides remain at odds over the scope and structure of the package. While Washington is pressing for more upfront cash contributions, Seoul has countered with a proposal for a currency swap arrangement to offset the risk of a sudden outflow of dollars.

Kim Yong-beom, presidential policy chief, briefs reporters on President Lee Jae Myung’s meeting with U.S. Treasury Secretary Scott Bessent at United Nations headquarters in New York, Wednesday (local time). Yonhap

After Lee’s meeting, Kim Yong-beom, the presidential policy chief, confirmed that the president had personally raised the currency swap request with Bessent.

“Lee made it clear that a swap is necessary to safeguard Korea’s financial stability when carrying out the investment,” Kim told reporters. He added that Bessent “listened carefully and promised to discuss the matter with relevant departments.”

Kim also emphasized the principles guiding Seoul’s approach: commercial rationality, feasibility within Korea’s financial capacity and mutually beneficial results.

“We will not sacrifice these principles simply to meet a deadline,” he said.

The government’s firm stance reflects its intention to avoid the kind of rigid terms that Washington imposed on Japan. Under that deal, Japan pledged $550 billion in investments to be spent at U.S. discretion and agreed to cash transfers within 45 days of agreements being made. Korean officials have repeatedly emphasized that the country’s economic structure is fundamentally different from Japan's and that it cannot accept the same terms.

The heightened pressure highlights the significant political and economic implications of Korea’s substantial investment commitment. Originally designed to reinforce the alliance and secure tariff relief, the package now risks stalling unless progress is made on the visa system and financial safeguards.

Attention is now turning to the Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting in Gyeongju, North Gyeongsang Province, scheduled for Oct. 31 and Nov. 1, where Lee is expected to meet U.S. President Donald Trump. Whether the two leaders can bridge the divide may determine the fate of one of the largest investment deals in Korea’s history.