Bessent expects outcome within 10 days from talks over Korea's $350b investment

US Treasury Secretary Scott Bessent said Wednesday that South Korea and the United States can resolve their differences over how to implement Seoul's $350 billion investment pledge, noting that he expects "something" to come "in the next 10 days."

Bessent made the remarks during a press meeting, responding to a question from Yonhap News Agency about whether the two countries can bridge their gaps over Korea's investment package, which was pledged as part of a bilateral framework trade deal struck in July.

"I'm sure the differences can be resolved. We are in discussion now, and I would expect something in the next 10 days," the secretary said.

Asked if the US can provide a currency swap arrangement as requested by South Korea, Bessent said that currency swap issues are not under the purview of his department.

"The Treasury (Department) does not provide a currency swap ... That is the Federal Reserve," he said. "If I were the Federal Reserve chair, and I'm not, Korea would already have a currency swap facility as with Singapore."

He did not elaborate on why he mentioned the Singapore case. In March 2020, the Monetary Authority of Singapore announced the establishment of a $60 billion swap facility with the US central bank.

During trade negotiations with Washington, Seoul has demanded financial safeguards, such as a currency swap arrangement, out of concern that Korea's massive direct cash investment, as initially demanded by the US, could trigger a crisis akin to the Asian financial meltdown in the late 1990s.

Seoul wants its investment in the US to come mostly in the form of credit guarantees and loans, with its direct equity investment accounting for around 5 percent of the total. It also requested that the US enable Korea to be involved in deciding where to invest for its investment package based on "commercial rationality."

During a CNBC forum earlier in the day, Bessent said that the US is about to "finish up" trade negotiations with Korea, noting that the two sides are ironing out the details as "the devil is in the details."

Upon arrival in the US, Korea's Finance Minister Koo Yun-cheol said that trade talks between the two countries are at a fast-paced coordination stage, hinting that progress is being made.

Negotiations between Seoul and Washington are expected to accelerate this week as top Seoul officials are expected to meet senior US negotiators.

Koo is likely to meet with Bessent as he plans to attend meetings of the Group of 20 finance ministers and the annual gatherings of the International Monetary Fund and World Bank in Washington this week.

Kim Yong-bum, South Korea's presidential chief of staff for policy, and Industry Minister Kim Jung-kwan are set to visit Washington for talks with US Commerce Secretary Howard Lutnick.

Trade Minister Yeo Han-koo will also fly to Washington on Wednesday. He is expected to meet US Trade Minister Jamieson Greer. (Yonhap)