S. Korea President: U.S. Investment Demands Could Trigger Financial Crisis

South Korea’s economy could fall into a crisis rivaling its 1997 meltdown if the government accepts current U.S. demands in stalled trade talks without safeguards, President Lee Jae Myung told Josh Smith, Hyunjoo Jin, and Heejung Jung of Reuters

The agreement between the US and South Korea has yet to be finalized because of disputes over how the investments would be structured. (Photo: 이재명 Facebook) 

Seoul and Washington verbally agreed to a trade deal in July in which the U.S. would lower President Donald Trump’s tariffs on South Korean goods in exchange for $350 billion in investment from South Korea, among other measures.

The agreement has yet to be finalized because of disputes over how the investments would be structured, Lee said.

“Without a currency swap, if we were to withdraw $350 billion in the manner that the U.S. is demanding and invest it all in cash in the U.S., South Korea would face a situation similar to the 1997 financial crisis,” he said through a translator.

In an interview at his office last week, Lee also addressed a large U.S. immigration raid that detained hundreds of Koreans, as well as Seoul’s relations with rival North Korea, neighboring China, and Russia, Cynthia Kim also reported for Reuters.