South Korean, US held 'acrimonous' talks over fund ahead of summit, Korean official says

SEOUL: South Korea and the United States had major disagreements over the details of the US$350 billion fund agreed as part of a trade deal ahead of an August 25 summit between U.S. President Donald Trump and South Korean President Lee Jae Myung, a senior official in Seoul said on Monday.

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US pressured South Korea to disclose investment details, causing friction ahead of the summit.
South Korea resisted, saying most investments would be loans and guarantees, not direct funding.
Despite tensions, officials said the summit helped build trust and personal ties between leaders.

Presidential policy adviser Kim Yong-beom said the United States tried to use the summit to increase pressure on Seoul to produce documents on the details of the investments, a move which drew resistance from Seoul officials and sparked concerns over the outcome of the summit.

"There were tense moments like yelling," he said during an interview livestreamed on a YouTube channel. He was apparently referring to a two-hour conference call he and other Korean officials had with U.S. Commerce Secretary Howard Lutnick the day before the summit.

He said the call was at one point "acrimonious" and he was worried that he would "screw up the summit".

He said the two sides differ over the structure of the fund, for example. South Korea has said direct investment would account for a small portion of the investments, which it said would largely consist of loans and guarantees.

While the two sides remain wide apart over the issue, he said it was a successful summit that helped build personal relationships and trust between the two leaders.