South Korea’s Top Trade Envoy Heads to U.S. for Stalled Tariff Talks Amid $350 Billion Investment Fund Dispute

South Korea’s chief trade negotiator, Yeo Han-koo, left Seoul on Monday for Washington as Seoul and Washington struggle to finalise a landmark trade deal first announced in July. The visit signals renewed efforts to bridge differences over tariffs and a proposed $350 billion investment fund, which both sides have yet to settle despite months of high-level discussions.

Officials in Seoul have blamed the delay on conditions similar to those in a recent U.S.–Japan trade agreement, which South Korea says could harm its foreign exchange market. Presidential policy adviser Kim Yong-beom warned last week that negotiations were “deadlocked” over currency-related provisions and raised concerns about potential impacts on the nation’s foreign reserves.

The finance ministry confirmed on Sunday that it is exploring ways with Washington to minimise disruptions to Korea’s onshore currency market but declined to say if a foreign-exchange swap line is under consideration. Yeo, speaking to reporters at the airport, emphasised that Seoul would pursue only “reasonable” outcomes that protect national interests and reaffirmed that the country would not open its agricultural market further.

Yeo’s trip follows the recent visit of Industry Minister Kim Jung-kwan, whose meetings with U.S. Commerce Secretary Howard Lutnick yielded little visible progress. President Lee Jae Myung has publicly warned he will not sign any agreement that jeopardises South Korea’s economic interests, underscoring rising domestic scrutiny of the talks.

The tariff negotiations are unfolding against a backdrop of strained bilateral relations. A recent U.S. immigration raid at a Hyundai Motor battery plant in Georgia, where hundreds of Korean workers were arrested, sparked outrage in South Korea and fuelled public debate over the costs of deepening U.S. investments. While President Donald Trump has said he wants foreign companies to bring skilled workers temporarily to train Americans, the images of detained Korean staff have intensified pressure on Seoul to secure better protections in any new trade pact.

sourcce: reuters