The tug-of-war over investment commitments between the US and South Korea continues, with South Korea warning that direct investment across the board will trigger foreign exchange pressure.

South Korea is currently reviewing a new proposal put forward by the United States, which involves the implementation of South Korea's commitment to invest $350 billion in the US, a commitment that has become a major obstacle to finalizing the trade agreement reached in July. South Korean Foreign Minister Cho Hyun stated to lawmakers in a parliamentary audit session on Monday: "The US has proposed a new alternative, which we are currently reviewing." This marks progress in the stalled tariff negotiations that have been ongoing for months. The South Korean Foreign Minister indicated that the goal is to make progress before the end of October's Asia-Pacific Economic Cooperation (APEC) summit, where South Korean President Moon Jae-in is expected to have a meeting with US President Trump. Formal negotiations related to the trade agreement reached in July have been at a standstill, with the focus of the dispute centered on South Korea's $350 billion investment commitment. Seoul has requested currency swaps from the US government, warning that without this arrangement, the investment plan could impact financial stability, as the proposed investment exceeds 80% of South Korea's foreign exchange reserves. The initial proposal included a combination of direct investment, loans, and loan guarantees, but the US later requested that all funds be implemented through direct investment. The specific details of the US revised proposal were not disclosed by the South Korean Foreign Minister. "We have made it clear to the US that if all funds are to be provided through direct investment, it will immediately cause foreign exchange pressure and may cause serious damage to our economy," Cho Hyun reiterated South Korea's reservations on the US demands. As this signal of flexibility emerges, the Trump administration has shown willingness to reach an agreement with China to ease the ongoing trade tensions, while also criticizing Beijing's new export controls as a significant barrier. The investment plan is a key component of the extensive trade agreement between South Korea and the US. Under the agreement, the US has agreed to impose a 15% tariff on imported goods from South Korea - lower than the 25% rate previously threatened earlier this year - with the tariff measures covering products such as South Korean automobiles. Cho Hyun emphasized: "We will strive to reach a mutually beneficial agreement - not just a one-sided agreement in favor of the US, but a win-win cooperation in sectors like shipbuilding. That's why, even if the negotiation process is delayed, we will stick to our current position."