South Korea cannot pay US $ 350,000 million in advance in investments in the United States, As President Donald Trump suggested in the framework of an agreement to reduce tariffs, and is looking for an alternative solution, Seoul presidential advisor said on Saturday.
Since the leaders of the allies reached an agreement in July to reduce US tariffs from 25% to 15%, as Trump had previously imposed, South Korea has said that US $ 350,000 million in investments would be made in the form of loan loans and guarantees, as well as shares.
Trump said this week that South Korea will contribute the investment “in advance”although Seoul argues that this type of disbursement could plunge Asia’s fourth economy into a financial crisis.
“The position we are talking about is not a negotiation tactic, but objectively and realistically it is not a level that we are able to handle,” said South Korean national security advisor, Wi Sung-Lac, on the television channel to News. “We cannot pay 350,000 million dollars in cash,” he added.
South Korea, which promised US $ 350,000 million for US projects in July, He has rejected Washington’s demands to control South Korean funds and officials affirmed that conversations to formalize their commercial agreement are in the dead.
On Thursday, Trump boasted of the amount of money that, according to him, his radical tariffs are contributing to the United States: “We have US $ 550,000 million in Japan, in South Korea 350,000 million. That in advance.”
Last week, the South Korean president, Lee Jae Myung, told Reuters that, without safeguards as a foreign exchange exchange, the economy of his country, with some foreign exchange reserves of US $ 410,000 million, he would enter crisis if he was forced to make a mass disbursement.
WI, Lee’s main security advisor, said no one would question the position of South Korea about the viability of the amount if required as payment in advance in advance.
“We are discussing alternatives,” he said, adding that Seoul is aiming at a summit of the Asia-Pacific Economic Cooperation Group (APEC) organized by South Korea next month, which Trump is expected to attend, to finish the commercial agreement with Washington.
