US Push for $350B Fund Risks Crisis in South Korea
South Korean President Lee Jae-myung has warned that a U.S. demand for South Korea to invest US $350 billion in a joint fund could destabilise the nation’s economy. He said such a commitment, without safeguards, risks triggering a financial crisis similar to past economic shocks.
What the Demand Involves
The demand is linked to trade and investment negotiations between Washington and Seoul. Under the talks, South Korea is being asked to contribute a massive $350 billion cash outlay to back global strategic industries and projects.
Concerns Over Funding & Safeguards
Lee stressed that making such an investment without protections against currency risk and other financial safeguards would leave South Korea highly vulnerable. He compared the potential fallout to the lead-up to the 1997 Asian Financial Crisis.
What’s Next
Seoul has sought more clarity on how the fund will be structured. The government is pushing for phased investments and strong safeguard mechanisms before moving forward with any agreement.
