South Korea May Seek Tariff Relief and U.S. Currency Swap to Protect Won in $350B Investment Talks

• Senior-level talks underway to finalize tariff relief terms

• Key sticking points: $350B investment structure, currency-market risk, and a U.S. currency-swap commitment

• Seoul reports “huge progress”; outcome could reshape Korea-U.S. trade and investment flows

South Korea US tariff talks: Seoul sends senior negotiators to Washington to resolve $350B investment, currency swap and tariff relief—read COINOTAG’s latest update.

Published: 2025-10-15 | Updated: 2025-10-15 | By COINOTAG

What is the status of South Korea–U.S. tariff talks?

South Korea US tariff talks are focused on converting earlier understandings into a binding agreement: Seoul has dispatched its industry minister and chief presidential policy secretary to Washington to negotiate final terms, particularly the proposed $350 billion investment condition, currency safeguards, and tariff-reduction mechanics. Both governments describe the discussions as more promising than prior rounds.

How could the $350 billion proposal and a currency-swap line affect negotiations?

Officials say the U.S. has linked tariff relief to a large-scale investment package estimated at about $350 billion. Seoul fears direct capital commitments of that magnitude could destabilize the won by creating sudden, large cross-border capital flows. South Korea is proposing alternatives — loans, guarantees, and joint ventures — to achieve the same U.S. economic objectives while reducing volatility. The finance minister described negotiators as having made “huge progress” toward a tentative deal. Plain-text sources include South Korean government statements, South Korea Finance Ministry releases, and U.S. administration briefings.

Frequently Asked Questions

Will South Korea secure a currency swap line with the U.S. as part of the tariff deal?

Seoul has formally requested a currency-swap arrangement to help manage exchange-rate risks tied to large investment flows. Negotiations are ongoing; U.S. officials are evaluating the request alongside investment and oversight terms. A swap line would provide short-term liquidity support for the won if needed.

Who is leading the negotiations for South Korea in Washington?

South Korea’s delegation is led by the industry minister and the presidential chief secretary for policy. They are meeting U.S. counterparts at senior levels to finalize the structure of investments, tariff relief, and financial safeguards—details communicated by Seoul’s government briefings.

Key Takeaways

• Senior engagement matters: Seoul sending top officials signals urgency and intent to finalize terms quickly.
• Investment vs. currency risk: A proposed $350B direct-investment condition is the main friction point; Seoul favors loans, guarantees, and joint ventures to limit won volatility.
• Swap line demand: South Korea’s request for a U.S. currency-swap line aims to provide a safety valve for exchange-rate stability if large capital flows materialize.

Conclusion

Negotiators are now in Washington to resolve the remaining differences in the ongoing South Korea US tariff talks, with attention focused on the $350 billion investment framework, currency-market protections, and the mechanics of tariff reductions. COINOTAG will monitor official statements from the South Korea Finance Ministry and U.S. administration briefings for confirmed outcomes. Expect updates if negotiators reach agreement or identify new technical safeguards for financial stability.

Author: COINOTAG | Sources (plain text): South Korean government statements; South Korea Finance Ministry; U.S. administration briefings; press reporting.