Seoul, Oct 12
Finance Minister Koo Yun-cheol is likely to hold a meeting with US Treasury Secretary Scott Bessent later this week in Washington, DC, on the sidelines of international gatherings, a source close to the matter said on Sunday, amid little progress over tariff negotiations.
As part of a framework trade deal to lower U.S. tariffs in July, South Korea and the United States have announced a $350 billion investment package from Seoul in principle. South Korea has demanded the U.S. establish a bilateral currency swap, saying that Seoul would face a financial crisis if such direct investment to the U.S. is made without safeguards, reports Yonhap news agency.
Koo will depart for Washington on Tuesday to attend meetings of the Group of 20 finance ministers and the annual gatherings of the International Monetary Fund, the finance ministry said Sunday.
On the sidelines of the multilateral gatherings, Koo is likely to hold a bilateral meeting with Bessent, according to the source.
Still, the date and agenda of the possible meeting between Koo and Bessent have yet to be confirmed, the source said.
Details of ongoing trade talks between South Korea and the U.S. were still unclear, but Seoul is also said to have requested reasonable flexibility in the proportion of direct investments, as well as a say in the selection of investment destinations to ensure commercial viability.
However, Seoul and Washington have yet to finalize details regarding the investment package and profit-sharing arrangements, and have not yet been able to formalize the agreement into a memorandum of understanding.
In September, Yun-cheol held trade talks with Bessent on the details of South Korea's planned investment in the United States, a currency swap and other issues during his ongoing visit to New York.
—IANS
— IANS
Reader Comments
$350 billion is huge money! South Korea is smart to demand currency swap arrangements. India should also push for similar protections in our trade deals with the US. Better safe than sorry when dealing with such large amounts.
As someone working in international trade, I appreciate South Korea's strategic approach. They're not just accepting whatever the US offers but negotiating hard for their national interests. More countries should do this.
The delay in finalizing details shows how complex these negotiations are. Hope they reach a fair agreement that benefits both countries. India can take notes for our own trade discussions with major economies.
While I understand the need for safeguards, I feel South Korea might be overplaying the "financial crisis" card. $350 billion investment with proper planning shouldn't cause a crisis for a developed economy like theirs.
Good to see countries standing up for their economic interests. The US often tries to dominate trade talks, but South Korea is showing how to negotiate as equals. India should follow this model in our international dealings. 💪
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