Offered $100 Billion... U.S. Demands $400 Billion Investment

Bloomberg: "Korea Considering Investment Fund"

Energy and Aircraft Purchase Packages Also Being Pushed

Lutnick, Japan's $550 Billion Investment

"Japanese Banks, 90% of Profits Go To the U.S."

The South Korean government, together with domestic companies, is reportedly reviewing plans to invest over $100 billion (about ₩137 trillion) locally in the U.S. to facilitate tariff negotiations with the United States. However, the U.S. side is demanding a promise of more than $400 billion (about ₩547 trillion) in investments in the U.S., indicating that negotiations will likely be difficult.

On the 24th, Bloomberg News cited multiple negotiation sources, reporting that South Korea is considering creating an investment fund for U.S. investments in order to lower American tariffs. Bloomberg also stated that during a recent meeting with South Korea's Trade Minister Yeo Han-koo, U.S. Secretary of Commerce Howard Lutnick requested a fund worth $400 billion (about ₩550 trillion). The Korean government is keeping the details of the negotiations confidential. Internally, they are reportedly considering limiting the fund to manufacturing industries where Korea and the U.S. can cooperate, such as defense and shipbuilding.

The investment fund requested by the U.S. is said to be similar to the $550 billion package Japan previously pledged to the U.S. after the U.S.-Japan tariff agreement. Immediately following the conclusion of those negotiations, Japanese Prime Minister Shigeru Ishiba explained that "Japanese public financial institutions can provide up to $550 billion (related to local U.S. investments) in equity, loans, and loan guarantees."

In an interview with Bloomberg TV, Secretary Lutnick emphasized that "Japan is only providing funding and not directly operating businesses, so investments differ in nature from Japanese companies like Toyota building factories in the U.S." Japan's investment package is therefore understood as a financial support measure, distinct from the direct investment plans that Korean companies have been preparing for U.S. tariffs talks.

The Korean government is also preparing a financial support package similar to Japan's within manufacturing sectors, such as defense and shipbuilding, where the two countries can collaborate. However, the scale is reportedly far below U.S. expectations. Hyo-seop Lee, a research fellow at the Korea Capital Market Institute, analyzed, "Japan can raise funds at lower interest rates because the yen is considered a key currency, but the Korean won is neither a key currency nor does it have lower funding costs than Japan," adding that "even if the fund is centered on the Korea Development Bank and Export-Import Bank of Korea, investment capacity is limited."

Separately, in order to reduce the trade surplus with the U.S., the government is also considering a purchase package worth '$100 billion-plus alpha' including American crude oil, LNG, aircraft, and more. Large corporations such as Samsung, Hyundai Motor Company, SK, and LG are also reviewing their U.S. investment plans. However, it is reported that these companies also feel burdened by large-scale new investment projects. A senior government official relayed the sentiment: "The U.S. wants cash, not promissory notes."

Reporters: Kim Dae-hoon/Kim Ri-an/Jung Young-hyo daepun@hankyung.com