South Korean President Lee Jae Myung has warned that his country could face a severe financial crisis similar to the 1997 Asian financial crisis if it meets President Donald Trump’s investment demands without proper safeguards. The warning comes as both countries struggle to finalize a trade agreement that was first outlined in July 2025.
The two nations reached a framework deal in July where the United States agreed to reduce tariffs on South Korean goods from 25 percent to 15 percent. In exchange, South Korea committed to investing $350 billion in American projects chosen by Trump, along with purchasing $100 billion in liquefied natural gas and other energy products. However, negotiations have stalled over how these massive investments would be structured and managed.
