Trump's Trade Deal Clash: South Korea's Economic Stakes

U.S. President Donald Trump has asserted that South Korea will provide billions of dollars in upfront investments. This statement clashes with South Korea's position, which stresses the necessity for phased funding to avoid potential financial instability.

A South Korean government official, speaking anonymously due to the delicate nature of the negotiations, revealed that both South Korea and Japan intend to contribute financing incrementally, responding to 'capital calls' by the United States rather than providing lump sums.

Despite a formalized trade agreement with Japan involving $550 billion, South Korean talks remain stalled. Tensions rise as U.S. officials push for similar terms, but South Korea insists on loans and safeguards, potentially including a currency swap, to ensure project viability.

(With inputs from agencies.)