U.S. Presses South Korea to Spearhead Massive Manufacturing Fund
(MENAFN) The United States has reportedly requested South Korea to spearhead a multi-billion-dollar “manufacturing cooperation enhancement fund” during ongoing tariff negotiations, according to a Wednesday report.
The fund aims to strengthen American manufacturing capabilities, media reported, citing anonymous South Korean government sources in Seoul.
If established, this fund would offer financial support to South Korean companies looking to build or expand manufacturing facilities within the US or invest in domestic partners.
Neither the US nor South Korean governments have officially confirmed the report.
Previously, the Trump administration pressed Seoul to reduce trade restrictions in agricultural products and digital data.
The US proposal reportedly mirrors a similar initiative from Japan—a “sovereign-style fund” designed to back American industries.
During its stalled trade talks, Japan reportedly suggested a $400 billion fund to the US, which has yet to reach an agreement.
South Korea and the US remain engaged in tariff negotiations following President Donald Trump’s announcement of new import duties of up to 25% on South Korean goods, set to take effect on August 1 if no accord is achieved.
Trump has also slapped 50% tariffs on copper imports, a key South Korean export.
Bilateral trade between the US and South Korea totaled approximately $197 billion last year, with the US running a trade deficit of $66 billion with Seoul.
According to the report, US officials raised the fund proposal twice earlier this month.
Leading South Korea’s negotiation team, Yeo Han-koo has met with US Commerce Secretary Howard Lutnick.
Seoul has offered to open its agricultural market and ease restrictions on exporting digital maps, while Washington shows interest in the proposed fund, the report stated.
With the August 1 deadline looming, South Korea’s chief trade negotiator Yeo stressed on Monday: “We are not going to sacrifice substance for speed.”
He added, “Rushing to meet the clock at the expense of national interest is not an option.”
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