(South Korea, 22nd)—South Korean President Lee Jae-myung said that if the Korean government accepts current US demands in trade negotiations without safeguards, the South Korean economy could fall into a predicament similar to the 1997 financial crisis.
Reuters reported on Monday (September 22) that in an exclusive interview, Lee Jae-myung said that South Korea is seeking to reach a tariff agreement with the US as soon as possible, but there are differences between South Korea and the US over ensuring the commercial viability of a $350 billion (about 1.4735 trillion ringgit) US investment project.
He said: "If there is no currency swap and we withdraw $350 billion in the way demanded by the US and invest it all in cash in America, South Korea will face a situation similar to the 1997 financial crisis."
Seoul and Washington reached a verbal trade agreement in July, with the US agreeing to lower tariffs on South Korean products in exchange for Korea's commitment to measures such as investing $350 billion in the US.
South Korea proposed establishing a foreign exchange swap arrangement with the US to reduce the impact of these investments on the Korean won market, but Lee Jae-myung did not disclose whether the US might agree, or whether this would be sufficient to advance the agreement. He pointed out that Korea is different from Japan, as Tokyo holds over twice the foreign exchange reserves as Korea and has a US dollar swap arrangement.
Regarding the incident earlier this month in which US immigration authorities raided the construction site of a Hyundai and LG Energy Solution joint venture plant in Georgia and detained employees of Korean companies, Lee Jae-myung responded that this event would not affect the South Korea-US alliance. He considered it the result of over-enforcement, not an intentional directive from US President Trump.
In addition, in the transcript of an interview published on the same day by the BBC, Lee Jae-myung responded to the North Korean denuclearization issue by saying that, as a temporary measure, freezing North Korea's nuclear program is a feasible plan.
He said that if Trump and North Korean leader Kim Jong-un reach an agreement to freeze nuclear weapons, South Korea would accept it.
However, he emphasized: "As long as we do not abandon the long-term goal of denuclearization, I believe it will certainly help persuade North Korea to stop developing nuclear and missile capabilities."
Reuters reported on Monday (September 22) that in an exclusive interview, Lee Jae-myung said that South Korea is seeking to reach a tariff agreement with the US as soon as possible, but there are differences between South Korea and the US over ensuring the commercial viability of a $350 billion (about 1.4735 trillion ringgit) US investment project.
He said: "If there is no currency swap and we withdraw $350 billion in the way demanded by the US and invest it all in cash in America, South Korea will face a situation similar to the 1997 financial crisis."
Seoul and Washington reached a verbal trade agreement in July, with the US agreeing to lower tariffs on South Korean products in exchange for Korea's commitment to measures such as investing $350 billion in the US.
South Korea proposed establishing a foreign exchange swap arrangement with the US to reduce the impact of these investments on the Korean won market, but Lee Jae-myung did not disclose whether the US might agree, or whether this would be sufficient to advance the agreement. He pointed out that Korea is different from Japan, as Tokyo holds over twice the foreign exchange reserves as Korea and has a US dollar swap arrangement.
Regarding the incident earlier this month in which US immigration authorities raided the construction site of a Hyundai and LG Energy Solution joint venture plant in Georgia and detained employees of Korean companies, Lee Jae-myung responded that this event would not affect the South Korea-US alliance. He considered it the result of over-enforcement, not an intentional directive from US President Trump.
In addition, in the transcript of an interview published on the same day by the BBC, Lee Jae-myung responded to the North Korean denuclearization issue by saying that, as a temporary measure, freezing North Korea's nuclear program is a feasible plan.
He said that if Trump and North Korean leader Kim Jong-un reach an agreement to freeze nuclear weapons, South Korea would accept it.
However, he emphasized: "As long as we do not abandon the long-term goal of denuclearization, I believe it will certainly help persuade North Korea to stop developing nuclear and missile capabilities."