South Korea-us Trade Deal: Seoul says that it cannot pay ‘$ 350 billion in cash’; Looking for alternative solution – The Times of India

Zuid -Korea has rejected the statement of US President Donald Trump that it will hand over $ 350 billion in cash as part of a deal to lower American rates and is rather looking for an alternative solution.Although Trump had previously told reporters that the money would arrive “in advance,” said Seoul’s presidential adviser on Saturday that the massive outflow will push the country into a financial crisis, Reuters reported.The national security adviser Wi Sung-Lac, to reject the interpretation of the US president, clarified that it simply cannot deliver the amount in cash. “The position we are talking about is not negotiating tactics, but it is rather objective and realistic not a level that we can process,” he said Channel a news.“We can’t pay for a cash $ 350 billion.”The two countries concluded a handshake agreement in July to lower the American rates in South Korean goods from 25% to 15%. Seoul promised $ 350 billion for projects in the United States, but made it clear that the money would come through loans, guarantees and equity instead of a direct cash payment.In the meantime, President Lee Jae Myung also warned in an interview with Reuters that paying such an amount without financial guarantees, such as a currency swap, could push the country in a crisis despite his $ 410 billion in the Deviezen reserves.Conversations to formalize the deal were stuck, where Seoul opposed Washington’s demands for control over the funds. South Korea hopes to arrange the case at the top of Asia-Pacific Economic Cooperation (APEC) that organizes the following month, where Trump is expected to be present.Apart from South Korea, the fourth largest economy in Asia, Trump also quoted a $ 550 billion deal with Japan.“We have $ 550 billion in Japan, in South Korea $ 350 billion. That’s before,” said the US president, encouraging the amount of money that would take rates to Washington.