South Korea Pushes to Finalize $350B Tariff Deal Ahead of APEC

• South Korea aims to conclude a critical U.S. trade agreement before the APEC summit.
• Discussions focus on a $350 billion investment package and policy disagreements.

South Korea dispatched senior officials to Washington on October 15, 2025, in an effort to expedite trade negotiations with the United States regarding tariff relief and a proposed $350 billion investment package. The visit seeks to finalize a tentative deal, addressing key differences over economic policy and investment structure ahead of the unofficial APEC summit deadline.

According to Reuters and The Korea Times, South Korean negotiators include Industry Minister Lee Chang-yang and Chief of Staff for Policy Kim Kwan-jin. Their primary task is resolving sticking points before the Asia-Pacific Economic Cooperation (APEC) summit in November, which both sides view as a critical deadline for concluding the agreement.

The highlighted $350 billion investment package represents the central challenge in the talks. Washington has called for substantial up-front capital spending to ensure transparency and oversight, a position Seoul has resisted. South Korea has proposed an alternative structure based on loans and guarantees instead of direct capital outflows, citing fears of potential destabilization of its currency, the won—evoking concerns of financial instability reminiscent of the 1997 Asian financial crisis.

To address currency risks, South Korea has made securing a U.S. currency swap line a priority. The Korea Times reports that recent discussions have shown progress, with both nations moving closer on foreign exchange terms related to the investment deal. In Seoul, optimism has grown that this breakthrough could help overcome persistent delays.

Another source of disagreement has been the scope of U.S. oversight over the investment package. Reuters noted that Washington has offered a revised proposal to allay South Korea’s concerns over governance terms. South Korean officials consider this update a positive step toward resolving the oversight issue, raising hopes of aligning both nations’ policy objectives.

The urgency of the negotiations reflects their significant geopolitical and economic stakes. Both nations aim to demonstrate tangible progress before the APEC summit, leveraging the momentum generated by recent proposals to avoid further delays. South Korean negotiators are working intensively to achieve an agreement that satisfies both parties' requirements while mitigating risks associated with the large-scale investment package.