Seoul:  South Korean President Lee Jae-Myung has cautioned that U.S. demands for South Korea to make \$350 billion in investments could destabilize the nation’s economy, potentially sparking a financial crisis similar to the 1997 Asian financial meltdown.

The proposed deal, which includes tariff reductions in exchange for the large U.S. investment, has not been formalized due to disputes over financial safeguards and the commercial feasibility of the projects. President Lee stressed that implementing the investment without protections, such as a foreign exchange swap line with the United States, could seriously impact South Korea’s financial stability.

Lee also criticized U.S. demands that South Korea cede control over investment decisions, emphasizing that such requirements could undermine the country’s economic autonomy.

Tensions were further heightened by a recent immigration raid at a Hyundai Motor battery plant in Georgia, where hundreds of South Korean workers were detained. While Lee acknowledged the Trump administration’s apology and the decision to allow the workers to remain, he warned that similar incidents could discourage South Korean investment in the U.S.

On the geopolitical front, President Lee expressed concern over closer ties between North Korea, Russia, and China, describing it as a growing threat to regional stability. He reiterated South Korea’s commitment to dialogue and coexistence but noted that North Korea has not engaged in concrete talks.

President Lee is expected to address the United Nations General Assembly and chair a Security Council meeting, highlighting South Korea’s active role in global diplomacy. However, he confirmed that no further meetings with President Donald Trump are currently scheduled, underscoring the challenges in U.S.-South Korea relations.