South Korea's President Warns Trump's $350 Billion Investment Request May Lead to a 1997-Like Financial Crisis

Written by Emily J. Thompson, Senior Investment Analyst

Source: Benzinga

Updated: Sep 22 2025

0mins

Source: Benzinga

Concerns Over Investment Demands: South Korean President Lee Jae Myung warned that President Trump's demand for a $350 billion investment in the U.S. could lead to a financial crisis similar to the one in 1997, especially without a currency swap agreement.
Trade Agreement Stalemate: The verbal agreement between South Korea and the U.S. regarding tariff reductions and investment management remains unfinalized due to disagreements over commercial viability, with Lee emphasizing that South Korea's economic position differs significantly from Japan's.
Impact of Immigration Raids: Recent ICE raids on Hyundai's battery manufacturing facility in Georgia have strained trade talks, with Lee acknowledging the anger among South Koreans over the treatment of workers but suggesting the incident was not intentional.
Ongoing Trade Negotiations: Discussions between the U.S. and South Korea regarding auto tariffs and visa rules are set to continue, highlighting the complexities of the trade relationship amid recent tensions.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.