South Korea cannot pay $ 350 billion in cash in the commercial pact

“Our post is not a negotiation tactic,” said national security advisor Wa Sung-Lac on Saturday evening in a channel A channel TV interview. “It is objectively and realistic not a level that we are able to manage,” he added. “We are unable to pay 350 billion dollars in cash.”

Seoul and Washington agreed in July for an investment commitment of $ 350 billion as part of a broader trade agreement to reduce American prices to 15%, against 25%, but both parties remain divided on how it should be structured.

Read more: United States, South Korea in blocking of more than $ 350 billion in investment

South Korean officials are looking for loans and a bilateral currency exchange arrangement with the United States to soften the economic impact, noting that the sum represents more than 80% of its foreign reserves.

The American Secretary of Commerce, Howard Lunick, would have told South Korean officials that Washington prefers in cash rather than on loans. President Donald Trump recently described the contribution as “in advance”.

Wi said that the government explored alternatives and hoped for progress when the two leaders will meet at the APEC top in Gyeongju next month.

In addition, Korean Minister of Finance, Koo Yun-Cheol, told journalists on Saturday that he had concluded talks with the United States on the exchange rate and would soon announce the details, said Yonhap News, noting that the discussions are distinct from the exchange of currencies.