The President of Korea.Lee Jae-myungOn the day of his departure to New York for the United Nations General Assembly (September 22), he sent a signal to the United States through the media. Li said that if the South Korean government accepted the U.S. investment demands in trade negotiations without safeguards, the South Korean economy could be plunged into a disaster comparable to the 1997 Asian financial crisis.

This speech caused Lee to be concerned during his five-day trip to New York.

On September 19, Seoul, South Korea, South Korean President Lee Jae-myung was interviewed at the Presidential Palace

The contradiction:

A $350 billion investment that may "hollow out" South Korea

Under the agreement, the United States agreed to reduce the high tariffs imposed by President Trump on South Korean goods, while South Korea needed to raise $350 billion to make massive investments in the United States.

However, due to disputes over the details of the investment, the agreement has not been formally signed so far. Lee Jae-myung pointed out the problem in the interview.

He said: "If there is no currency swap mechanism, and we have to withdraw $350 billion in the way that the United States now demands, and invest all it in cash in the United States, then South Korea will face a situation like the 1997 financial crisis."

Lee further explained the difficulties of South Korea. He said the situation in South Korea was completely different from Japan, which also had an agreement with the United States. He noted that Japan had more than $800 billion in foreign exchange reserves ($41 billion in South Korea) and there was a ¡°safe net¡± for exchanging currencies between Japan and the United States.

The situation in South Korea is completely different from the situation in Japan, depicting the flag of South Korea and Japan (data map)

Currently, the biggest obstacle to negotiations lies in how to ensure the ¡°commercial feasibility¡± of this huge investment. Lee revealed that Trump wants to ¡°select¡± investment projects by himself and be controlled by the United States, which disturbs South Korea about the potential risks in them. Lee said: ¡°Reaching a detailed agreement to ensure business rationality is the core task at the moment, but this is also the biggest obstacle.¡±

To add insult to injury:

Hundreds of South Korean workers were arrested in the United States or triggered a backlash

In addition to the impasse in trade negotiations, another incident that caused the South Korean people to "burn in anger" has also shaded the relationship between the two countries.

Earlier this month, U.S. law enforcement carried out massive immigration raids at a battery factory in Georgia jointly funded by LG Energy Solutions and Modern Automobiles, arresting more than 300 South Korean workers.The Trump administration also released photographs of those workers wearing cranberries, sparking strong indignation in South Korea.

Li warned that the incident could cause South Korean companies to rethink before deciding to invest in the United States.

But at the same time, Lee said he did not consider the assault to be Trump's "intention", praising Trump's proposal to allow these workers to leave, and revealing that the United States had apologized for the matter and both sides agreed to seek a reasonable solution.

Scene map of US law enforcement officers raiding Korean factories (picture/video screenshot)

This isly Lee¡¯s third overseas visit since he took office and his second visit to the United States in a month.In addition to speaking at the UN General Assembly, he will also be the first South Korean president to preside over an open Security Council debate on ¡°Artificial Intelligence, Peace and Security¡± and attend the ¡°Korean Investment Summit¡± to promote the South Korean economy to global investors.

Red Star News reporter Deng Shuyi

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