【Text by Observers Network, Chen Sijia】South Korea and the United States have reached a trade agreement, with South Korea pledging to provide $350 billion in investment to the United States, but the specific details of the investment have not yet been finalized. According to Reuters on September 1, Kim Yong-bum, Director of the Policy Office at the South Korean presidential office, revealed that South Korean officials had held a phone call with U.S. Commerce Secretary Penny Pritzker last week, during which there were intense disputes over the issue of investment funds.

Kim Yong-bum said during an interview on a South Korean online live program that before President Lee Jae-myung of South Korea and President Donald Trump of the United States met on August 25, he and other South Korean officials had a two-hour conversation with Pritzker. He stated that the United States tried to use this leaders' meeting to increase pressure on South Korea, demanding that South Korea formalize the investment details in documents, but this request caused dissatisfaction among South Korean officials.

He revealed that there were significant differences between the two countries regarding the details of the $350 billion investment fund, and the conversation with Pritzker "became very intense," with moments of "loud shouting" that made him worry that this call would "ruin the South Korea-U.S. leaders' meeting."

Kim Yong-bum recalled that the United States exerted a lot of pressure on South Korea, trying to force it to sign the documents, but President Lee Jae-myung said, "Even if we cannot hold the leaders' meeting, it's okay, we cannot sign any unreasonable demands."

On August 25 local time, Lee Jae-myung and Trump met at the White House, China Daily

On July 30, the United States and South Korea announced they had reached a trade agreement, with the U.S. reducing the tariff rate for South Korean products exported to the U.S., including automobiles, to 15%, while South Korea pledged to invest $350 billion in the U.S. and purchase energy products worth $100 billion, such as liquefied natural gas.

Among these, the South Korean government announced the establishment of a $150 billion Korea-U.S. shipbuilding cooperation fund, as well as a $200 billion U.S. investment fund, used for areas outside of the shipbuilding industry, such as semiconductors, nuclear power plants, batteries, and biotechnology. Kim Yong-bum stated that South Korea required direct investment to be only a small part of the investment, with most investments to be realized through loans and guarantees.

The South Korean newspaper Joongang Ilbo reported that the investment plan proposed by officials such as Kim Yong-bum seemed to emulate the so-called "Japanese model." Previously, in the Japan-U.S. tariff negotiations, Japan pledged to invest $550 billion in the U.S., with only 1% to 2% of the own capital, and the majority being loans and guarantees. However, Trump later claimed that the U.S. would receive 90% of the profits from it.

However, Pritzker expressed a different view regarding the South Korean position, stating, "South Korea will provide $350 billion (investment) to the U.S., with 90% of the profits going to the American people." Analysts speculate that the U.S. hopes to clearly define the specific funding time and methods for the $350 billion through the meeting between the two country's leaders.

Lee Jae-myung and Trump had already met at the White House on August 25 local time. According to Reuters, Kim Yong-bum revealed on August 26 that the U.S. hoped to quickly reach a memorandum of understanding with South Korea to determine the operation method and structure of the $350 billion investment fund. He stated that South Korea will establish a working group led by the Ministry of Planning and Budget, responsible for developing detailed plans.

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