Seoul warns of FX risks as Trump pushes for US$350 bn upfront payment

South Korean Finance Minister Koo said it’s uncertain whether Trump will accept Seoul’s opposition to a US$350 bn upfront investment.

• Seoul warns a one-time payment could destabilise FX markets, risking a crisis.

• Koo raised the issue with U.S. Treasury Secretary Bessent, who agreed to convey Korea’s concerns.

• The July trade deal remains pending amid disputes over investment funding.

Info via Yonhap.

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South Korea’s Finance Minister Koo Yun-cheol said it remains uncertain whether President Donald Trump will accept Seoul’s opposition to a US$350 billion upfront investment tied to their July trade deal.

Speaking in Washington, Koo said such a large one-off payment could destabilise Korea’s foreign-exchange market, potentially sparking financial stress similar to the 1997 Asian crisis.

Koo raised the issue with U.S. Treasury Secretary Scott Bessent, who acknowledged Seoul’s concerns and pledged to relay them to senior officials including Commerce Secretary Howard Lutnick.

He said U.S. officials “understand Korea’s position,” but it’s unclear if Trump will agree. The deal, which would lower U.S. auto tariffs to 15% in exchange for investment commitments, remains pending amid talks over funding terms and structure.

This article was written by Eamonn Sheridan at investinglive.com.