The US also expressed some understanding over concerns about a foreign exchange crisis, with the proportion of direct investment among the $350 billion being a point of contention.

Koo Yoon-chul and Besant met to support negotiations… Besant:"South Korea is in the final stages of trade negotiations."

(Sejong = Yonhap News) Reporter Cha Dae-woon = With the Korea-U.S. tariff negotiations at a standstill over details of a total $350 billion (499 trillion won) investment package in the U.S., Kim Yong-beom, Chief of Staff to the President for Policy, and Kim Jeong-gwan, Minister of Trade, Industry and Energy, will depart for the country together on the 16th for a meeting with Secretary of Commerce Howard Rutnick.

With President Donald Trump expected to visit South Korea later this month to hold a summit with President Lee Jae-myung on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, attention is focused on whether the two countries can find a breakthrough, as this is likely to be the last face-to-face cabinet-level negotiation.

The Office of the President and the Ministry of Trade, Industry and Energy announced through press releases on the 15th that Director Kim and Minister Kim will visit the United States on the 16th for follow-up discussions on the Korea-U.S. tariff negotiations.

The two will travel together to Washington, D.C., to negotiate with U.S. Commerce Secretary Howard Rutnick, the key figure in U.S. tariff negotiations.

This negotiation is drawing attention as it took place amidst our side's 'revised proposal' regarding the key point of contention, the 350 billion dollar investment, and the US's 'partial response' to it.

Minister Kim, who served as our government's representative for tariff negotiations with the U.S., met with his counterpart, Secretary Rutnick, in New York on September 11 and October 4, during the Chuseok holiday, for negotiations.

According to sources familiar with the matter, during the September negotiations, Minister Kim presented the US with a revised proposal from our side, which included an unlimited currency swap. In the more recent negotiations on October 4th, Secretary Rutnick reportedly expressed some sympathy for South Korea's concerns about foreign exchange market instability, suggesting a shift in the US position.

Foreign Minister Cho Hyun explained at the National Assembly on the 13th,"The United States has now presented a new alternative. We are currently reviewing it."

Ultimately, some observe that the success or failure of this negotiation hinges on the extent to which the U.S. side will respond to South Korea's interest in securing a"safety net" that would tie up the size of cash investment at a "reasonable level" to prevent instability in the foreign exchange market and South Korea's ability to shoulder the burden of the $350 billion investment package.

In the tariff negotiations concluded on July 30, South Korea and the United States agreed to lower the reciprocal tariffs on South Korea from 25% to 15%, as previously announced by the United States, and for South Korea to invest a total of $350 billion in the United States. However, there has been a significant difference of opinion on the implementation method.

When the tariff negotiations were concluded in July, South Korea had planned to make a 5% equity investment in direct cash, with most of the investment made in the form of credit guarantees without direct cash transfers, and the remainder made up of loans. However, the United States is demanding a"blank check for investment," as in the previous agreement with Japan.

Afterwards, the Korean government demanded ▲ the conclusion of an unlimited Korea-U.S. currency swap ▲ a reasonable level of direct investment ▲ guaranteeing the right to participate in the selection of investment destinations based on ‘commercial rationality.’

If these conditions are not met, the U.S. has made a strong statement that it cannot sign the investment memorandum of understanding (MOU) it is demanding, and it is being evaluated as a situation where it has effectively 'given up' the possibility of tariff negotiations breaking down.

However, as some have mentioned, it is said that the US did not demand that South Korea pay the entire $350 billion in advance in the short term during the negotiations.

However, it has been reported that our government believes that if we follow the Japanese method of giving the US the initiative in selecting investment locations and methods, the US could demand cash-based investment for each project in the future, which could eventually reach a scale that is difficult to handle. Therefore, it is believed that we need to secure a"safety net" in advance.

Meanwhile, the fact that Policy Director Kim Yong-beom joined Minister Kim, who had been negotiating with Minister Rutnick, is being analyzed as reflecting the government's will to produce concrete results ahead of the upcoming APEC summit between South Korea and the U.S., which will be a major turning point.

Deputy Prime Minister and Minister of Strategy and Finance Koo Yoon-chul will also meet with U.S. Treasury Secretary Scott Besant to provide support for tariff negotiations during the G20 Finance Ministers and Central Bank Governors Meeting and the International Monetary Fund (IMF) and World Bank (WB) Annual Meetings to be held in Washington, D.C., on the 15th and 16th (local time).

Experts say that Korea is also burdened by the continued uncertainty surrounding tariffs from the U.S., and that the U.S. desperately needs Korea's help in revitalizing its own industries, such as shipbuilding, and strengthening its supply chain amid the intensifying U.S.-China conflict, so there is speculation that a compromise could be attempted, focusing on phrases that allow for flexible interpretation.

There were also comments from the US side suggesting the Trump administration's intention to conclude the Korea-US trade negotiations.

Secretary Besant told CNBC on the 15th (local time),"We are about to finish up with Korea." When asked if there were any differences of opinion regarding Korea's investment in the U.S., he responded,"The devil is in the details, but we are ironing out the details."

Although Korea has proposed an unlimited Korea-U.S. currency swap as a"necessary condition," some observe that our claim is a negotiating strategy to emphasize Korea's "limited burden-bearing capacity," given that concluding a currency swap is under the authority of the Federal Reserve, not the federal government.

A source in the negotiations said,"Through the negotiations so far, we have strongly conveyed the message to the U.S. that if they continue to make unreasonable demands on Korea, they will end up killing the goose that lays the golden eggs, and I believe that the U.S. has at least formed a certain understanding about this."

Furthermore, although it is being carried out in a diplomatic and security context that appears to be different from normal, discussions on long-standing issues of Korea, such as allowing uranium enrichment below a certain concentration and nuclear fuel reprocessing, could also be a factor in promoting a breakthrough in Korea-U.S. tariff negotiations, depending on the outcome.

If progress is made in this area, public opinion in Korea regarding the cost of investment in the United States is likely to become more lenient.

There is also analysis that the recent situation, such as the Chinese government's move to weaponize strategic resources such as rare earth elements and the sanctions against Hanwha Philly Shipbuilding, a symbol of the Korea-US MASGA (Make American Shipbuilding Great Again), could be factors that promote a Korea-US compromise.

Jang Sang-sik, director of the International Trade and Commerce Research Institute at the Korea International Trade Association, said,"The Korea-U.S. supply chain cooperation has provoked a backlash from China, but this, in turn, has served to further highlight the importance of cooperation between Korea and the U.S. In that sense, it can be seen that the U.S. now has an additional card to play in arguing that it needs to be considerate of Korea in order to move forward together with Korea."