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President Lee Jae-myung meets U.S. President Donald Trump in the Oval Office at the White House on August 25 to discuss trade and investment issues. / Source: White House Flickr

U.S. President Donald Trump said on September 25 that South Korea would provide $350 billion in investment to the United States and stressed that it must be paid “up front,” underscoring the widening gap between Washington and Seoul over the structure of their trade and investment deal.

Speaking at the White House after signing an executive order forcing TikTok’s U.S. operations to be sold to American investors, Trump touted trade deals as major revenue sources. “We were never treated properly before, but now we are. Thanks to tariffs and trade agreements, we secured $950 billion in one case. Japan is giving $550 billion, Korea $350 billion — and that’s up front,” he said.

While Trump cited a $950 billion figure in reference to the European Union, the amount does not match the deal struck in July, when EU leaders agreed to purchase $750 billion worth of U.S. energy and add more than $600 billion in new investments.

The remarks came as the $350 billion Korean investment commitment remains the most contentious issue in ongoing U.S.-Korea negotiations. Seoul has sought to structure the pledge mostly through guarantees and limited equity stakes, whereas Washington is pushing for Japan-style terms: cash equity investment directly from Korea, U.S. control over allocation, and a 90% share of profits going to American partners.

Korean officials warn that agreeing to such terms would expose Seoul to significant foreign exchange risks and have pressed for a bilateral currency swap as a safeguard — a proposal Washington has resisted.

The Wall Street Journal reported the same day that Commerce Secretary Howard Lutnick privately told Korean officials the U.S. wants more of the package in cash rather than loans. According to the report, Lutnick also suggested that Korea’s contribution could be raised beyond $350 billion, moving closer to Japan’s $550 billion commitment.