• South Korea unable to pay $350 billion upfront as suggested by Trump.
• Funds will come through loans and guarantees, not cash payments.
• Concerns about possible economic crisis without financial safeguards.
• Talks to finalize trade deal have stalled over control of funds.
• Seoul aims to resolve issues at APEC summit next month.

South Korea has definitively stated it cannot pay the $350 billion in cash that President Donald Trump suggested as part of a deal to reduce tariffs. Instead, Seoul is exploring alternative financial arrangements, as clarified by the country's National Security Adviser, Wi Sung-lac. He emphasized that the demand for upfront cash is "objectively and realistically not a level we are able to handle," indicating the potential risks to the nation's economy, according to Reuters, Channel News Asia, and South China Morning Post.

Following a handshake agreement in July to lower U.S. tariffs from 25 percent to 15 percent, South Korea pledged the $350 billion target for investment projects in the U.S., yet has made it clear that this amount would be provided in the form of loans, loan guarantees, and equity rather than direct cash payments. "We are not able to pay $350 billion in cash," stressed Wi on Channel A News, reinforcing the concerns that such a financial outlay could plunge South Korea into crisis, as echoed by South Korean President Lee Jae Myung, according to Reuters, Channel News Asia, and South China Morning Post.

Discussions on finalizing the trade deal have currently reached an impasse, largely due to South Korea's reluctance to comply with U.S. demands for greater control over the investment funds. Currently, both nations aim to resolve the dispute at the upcoming Asia-Pacific Economic Cooperation (APEC) summit hosted by South Korea next month, which Trump is expected to attend. This negotiation context highlights the delicate balance between achieving favorable economic outcomes and the potential risks posed to South Korea's financial stability, as reported by India Times, Reuters, and Channel News Asia.