Trump Pushes South Korea for Billion-Dollar Investments Amid Trade Tensions

U.S. President Donald Trump is pressuring South Korea to commit billions of dollars in investments, despite fears in Seoul of an impending financial crisis. While South Korea has pledged $350 billion toward U.S. projects, it opposes U.S. demands for fund control, bringing trade talks to a standstill.

Recently, Trump concluded a trade agreement with Japan, reducing tariffs on automobile imports in exchange for $550 billion investment into U.S. projects. Trump has been pushing South Korea to agree to similar conditions, but Seoul's negotiations remain fraught with difficulties.

South Korean President Lee Jae Myung warned of economic peril without safeguards, such as a currency swap. Analysts doubt such an agreement will materialize; instead, Seoul prefers structuring investments as loans. As political uncertainties deepen, the South Korean government remains firm on ensuring deals align with national interest and commercial viability.

(With inputs from agencies.)