Trump requires $ 350 billion investment to reduce tariffs, but Lee Jae-Myung says the country’s currency reserves add $ 410 billion
The president of South Korea (South Korean Democratic Party) warned that the Asian country could face an economic crisis similar to 1997 if it accepts the current demands of the United States without adequate guarantees. In an interview with Published on Sunday (21.Set.2025), Lee explained that Seoul and Washington reached a verbal agreement in July on trade and investments, but divergences about resource management prevented the formalization of the document.
Negotiations between the 2 countries include the reduction of the President (Republican Party) on South Korean products in exchange for US $ 350 billion investments from South Korea in the US. The absence of an agreement of swap Cambial has been an important obstacle for the advancement of conversations.
Lee expressed concern about the impact that such an investment would have on the country’s currency reserves. “Without a currency swap, if we had to remove $ 350 billion the way the US is demanding and investing everything in money in the US, South Korea would face a situation like the one it had in the 1997 financial crisis ”declared the president.
Discussions between South Korea and the US dominate the trip schedule Lee will make New York, where he will speak at the General Assembly of (United Nations). He will be the 1st South Korean president to chair a meeting of the Security Council. According to Reuters, There are no plans for a meeting with Trump during the visit.
South Korea’s currency reservations total $ 410 billion, which makes the US $ 350 billion investment required a delicate issue for South Korean authorities.
Lee talked about the differences between his country and Japan, which commercial with the US in July. According to him, Tokyo has more than twice the southern Korea currency reserves, as well as having an international coin with yen and a line of swap with the US.
“Achieve detailed agreements that guarantee reasonableness commercial is now the central task – still remains the biggest obstacle”Lee said.
The South Korean president will travel to New York, where he will try to show the world that “Democratic Korea is back”According to their own words. Trade negotiations are not officially on the visit agenda, but they will influence the diplomatic backstage.
During the interview, Lee commented on the US that resulted in the detention of more than 300 South Korean workers in a Battery Factory in Georgia. He described the treatment of workers as “severe”But recognized Trump’s efforts to solve the situation.
“I do not believe this was intentional. The US has apologized for this incident, and we agree to seek reasonable measures in this regard and we are working on them”Said Lee.“We will be able to maintain the minimum rationality“, These.
Lee mentioned that South Korea and the US do not disagree with the increase in Seoul’s contributions to their own defense, reinforced by 28,500 US troops on the Korean Peninsula. Washington, however, wants to handle safety and commerce conversations.
Trump says the investments will be “selected”For him and controlled by the US, which means Washington would have decisive power on where the money would be invested. Lee policy advisor Kim Yong-Beom said in July that South Korea had added a security mechanism to reduce the risk of financing.
“We must end this unstable situation as soon as possibleLee said when asked if negotiations could extend until next year.
Discussions take place in the context of growing tensions involving North Korea, China and Russia. Lee has sought to reduce differences with Pyongyang, but the North Korean regime has rejected approach initiatives.
Military cooperation between North Korea and Russia is seen as a threat to South Korea’s safety. Between North Korean leader Kim Jong-A and Russian President Vladimir Putin in Beijing shows the strengthening of these alliances.
“This is a very dangerous situation for Korea, and we need to find a way out for the growing military tensions”Said Lee.”We need to find a path to peaceful coexistence”He said.
