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Foreign Minister Cho Hyun appears before the National Assembly Foreign Affairs and Unification Committee on Oct. 13, 2025, where he takes questions from lawmakers as part of an annual parliamentary audit of the government. (Yonhap)

Regarding ongoing trade negotiations with the US, South Korean Foreign Minister Cho Hyun said Monday that the US had come up with a new proposal that Korea was currently reviewing. 

Cho said that the US has softened on its demand for an all-cash investment of US$350 billion and that the two sides were “slowly finding common ground.” 

During an audit by the National Assembly’s Foreign Affairs and Unification Committee, independent lawmaker Lee Choon-suak asked Cho about the impact that a direct investment of US$350 billion in the US would have on the Korean economy. Cho replied that the US had come forward with a new proposal. 

When asked about the details of the new proposal, Cho responded, “If we invest US$350 billion [all in cash] as they’re currently asking, our foreign exchange market would not be able to withstand the shock. We made a proposal, and they offered an opinion, and that’s how the negotiations are going.”

The minister did not mention anything specific about the supposed new proposal made by the US, but when asked if the US had backed down in its demand for South Korea to invest US$350 directly in a single up-front cash payment, Cho responded, “Yes.” 

On the same day, the presidential office announced that the US had responded to portions of Korea's proposal in September regarding the financial package. The office said it was unable to offer specifics, however, as negotiations were “ongoing.”

At the end of July, the US and South Korea agreed on a general deal that would lower US tariffs on South Korean imports from 25% to 15%. Afterward, the US demanded that Korea’s pledged US$350 billion in investments be made in cash, and South Korea responded with a request for an unlimited currency swap. 

Appearing before lawmakers as part of the annual parliamentary audit of government agencies, Finance Minister Yoo Yun-cheol said that the US had made its demand for the US$350 billion investment to be entirely in cash on Aug. 6.

When Democratic Party lawmaker Jung Il-young asked if South Korea would be able to handle the investment being in cash, Koo said, “It would be difficult for us to handle it, so that’s why we thoroughly explained our forex situation to US Treasury Secretary Scott Bessent. Secretary Bessent said he understood our forex market situation, and would have to discuss it internally.“  

Koo is trying to set up a meeting with Bessent in Washington, where the Korean minister is scheduled to attend a meeting of G20 finance ministers and central bank governors on Wednesday.  

The Lee Jae Myung administration aims to secure an agreement before its summit with the US scheduled to be held during the Asia-Pacific Economic Cooperation summit later this month. US President Donald Trump is scheduled to arrive in South Korea on Oct. 29 and stay for one night. The Lee administration is currently trying to set up a meeting with Trump during his stay.  

“There is a good chance that President Trump will not be able to attend the main event of the APEC summit [on Oct. 31],” Cho said, noting that there is a high possibility that the summits between South Korea and the US, the US and China, and South Korea and China will be held in Gyeongju.  

Asked if he expects the leaders of the US and China to sit down for a summit on the sidelines of the APEC summit. Cho said, “I think neither side would miss an opportunity as good as this one.” 

Regarding schedules for the visits to Korea by Trump and Chinese President Xi Jinping, Cho said that plans are “nearly in the confirmation.” 

By Seo Young-ji, staff reporter; Shin Min-jung, staff reporter

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