South Korea and U.S. Trade Tensions: The $350 Billion Dilemma

South Korea faces challenges in meeting a $350 billion investment deal proposed by President Trump. The suggested upfront payment risks financial instability for Asia's fourth-largest economy. Talks for alternative financing are ongoing ahead of an upcoming APEC summit, where final trade terms may be discussed.

South Korea finds itself in a contentious trade negotiation with the United States, facing a proposed $350 billion investment that could destabilize its economy. Despite President Trump's assertion that the investment should be upfront, Seoul insists the funds would be better served through loans and guarantees.

Since the July agreement to reduce U.S. tariffs, South Korea has maintained that providing such a vast sum in cash is unfeasible. Key officials, including National Security Adviser Wi Sung-lac, have reiterated Seoul's position, seeking alternative solutions to meet the investment target without causing financial harm.

With the APEC summit approaching, South Korea aims to resolve the impasse and finalize its trade arrangements with the U.S. The outcome of these talks could significantly impact economic relations between the two countries and the broader Asia-Pacific region.

(With inputs from agencies.)