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South Korea’s president warns U.S. trade demands could trigger a financial crisis without safeguards, amid stalled talks and unresolved trade issues.
South Korea’s President Lee Jae Myung warned that accepting U.S. trade demands without safeguards, including a $350 billion cash investment, could trigger a financial crisis similar to 1997, citing risks to the won and lack of currency protection.
Though a July agreement lowered tariffs in exchange for investment, talks stall over implementation, commercial viability, and U.S. control.
Lee stressed the need for a foreign exchange swap line, noting South Korea’s smaller reserves compared to Japan.
He criticized a recent U.S. immigration raid detaining over 300 Korean workers as excessive but affirmed strong alliance ties, praising Trump’s offer to let workers stay.
Lee will chair a U.N. Security Council meeting—making him the first South Korean president to do so—though no meeting with Trump is scheduled, and trade talks remain unresolved.
El presidente de Corea del Sur advierte que las demandas comerciales de EE.UU. podrían desencadenar una crisis financiera sin salvaguardas, en medio de conversaciones estancadas y problemas comerciales no resueltos.