South Korea has rejected US President Donald Trump’s claim that it will be handing over $350 billion in cash as part of a deal to cut American tariffs and is rather, looking for an alternative solution.Though Trump had earlier told reporters that the money would arrive “upfront,” Seoul’s presidential adviser on Saturday said that the massive outflow will push the country into a financial crisis, Reuters reported.Dismissing the US president’s interpretation, South Korea’s national security adviser Wi Sung-lac clarified that it simply can not provide the amount in cash. “The position we’re talking about is not a negotiating tactic, but rather, it is objectively and realistically not a level we are able to handle,” he told Channel A News.“We are not able to pay $350 billion in cash.”The two countries struck a handshake agreement in July to lower US tariffs on South Korean goods from 25% to 15%. Seoul pledged $350 billion for projects in the United States, but made clear the funds would come through loans, guarantees and equity rather than a direct cash payment.Meanwhile, President Lee Jae Myung also warned in an interview with Reuters that paying such a sum without financial safeguards, like a currency swap, could push the country into crisis despite its $410 billion in foreign exchange reserves.Talks to formalise the deal have stalled, with Seoul opposing Washington’s demands for control over the funds. South Korea hopes to settle the matter at the Asia-Pacific Economic Cooperation (APEC) summit it is hosting next month, where Trump is expected to attend.Apart from South Korea, Asia’s fourth largest economy, Trump also quoted a $550 billion deal with Japan.“We have in Japan it’s $550 billion, South Korea’s $350 billion. That’s upfront,” the US president said while touting the amount of money that tariffs would be bringing to Washington.
