South Korea US Negotiations Focus on Structure of $350B Investment Pledge

South Korea's ambitious $350 billion investment plan in the US is facing significant challenges ahead of the APEC summit, primarily due to disagreements over payment structure and trade issues such as existing US auto tariffs. US officials, including Treasury Secretary Scott Bessent, have expressed concerns that an upfront payment of the full amount could destabilize South Korea's foreign exchange market, which is already experiencing volatility. South Korea is advocating for a balanced approach combining direct investments, loans, and guarantees, with an annual deployment limit of around $20 billion to avoid market disruption, a figure supported by the Bank of Korea. The possibility of a currency swap agreement remains uncertain and will depend on the final structure of the deal, with some officials suggesting it may not be necessary or could be limited in scale. These negotiations have extended over two months and are more complex than a recent $550 billion US-Japan investment deal, highlighting trust and policy challenges in cross-border economic partnerships. The outcome of these talks will have important implications for US-Asia economic relations and could influence sectors such as semiconductors, renewable energy, and electric vehicles.