Archive · 22 Sep 2025
South Korea Warns of Economic Crisis Amidst U.S. Trade Deal
South Korea's President, Lee Jae Myung, is worried about a trade deal with the U.S. that could hurt the country's economy.
He believes that without a special plan to manage money, South Korea could face a big financial crisis, similar to the one in 1997.
The U.S. wants South Korea to invest a lot of money in the U.S., but Lee wants a way to protect the South Korean economy.
He's concerned about the details of the deal, including how the investments will be handled.
Lee mentioned that there is growing tension between a socialist camp and a capitalist camp and South Korea’s geographic location means it is at the center.
South Korean President Lee Jae Myung warned of a potential economic crisis due to trade deal terms.
The U.S. demands $350 billion investment from South Korea as part of the deal.
Disagreements exist over handling investments and details.
South Korea has proposed a foreign exchange swap line for protection.
Lee noted increasing tensions with North Korea, China, and Russia.
- Who
- South Korean President Lee Jae Myung
- What
- Warned of potential economic crisis if trade deal with the U.S. proceeds without currency safeguards.
- When
- September 2025
- Where
- South Korea and United States trade talks.
- Why
- To highlight the risks of the proposed trade deal lacking financial protections for South Korea's economy.
South Korea's View
United States' View
Currency Safeguards
South Korea's View
Wants a currency swap line and investment protections to avoid economic crisis.
United States' View
Unspecified. Insists on a deal, citing Japan's example.
Investment Details
South Korea's View
Seeking safeguards in investments to reduce financial risk.
United States' View
Wants to control where money is invested and believes that Seoul should agree to terms like Japan.
Tariffs
South Korea's View
Avoidance of financial shock.
United States' View
Either the deal is accepted, or tariffs will be paid
- Key Figure
- South Korean President Lee Jae Myung
- Trade Deal Issue
- Investment safeguards and currency swap line
- U.S. Investment Demand
- $350 billion
- Currency Swap
- Proposed to reduce market shock
- U.S. Stance
- Wants investment details like Japan
- Tensions
- North Korea, China, Russia
