Trump's $350 Billion Investment Demand Could Trigger 1997-Style Financial Crisis, Says South Korea's President

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

South Korean President Lee Jae Myung said that President Donald Trump’s demands for a $350 billion investment in the U.S. could trigger a 1997-style Asian financial meltdown, without the necessary safeguards.

Seeks Currency Swap With Washington

“Without a currency swap, if we were to withdraw $350 billion in the manner that the U.S. is demanding and to invest this all in cash in the U.S., South Korea would face a situation as it had in the 1997 financial crisis,” Lee told Reuters in an interview.

Trending: The same firms that backed Uber, Venmo and eBay are investing in this pre-IPO company disrupting a $1.8T market — and you can too at just $2.90/share.

This comes after a verbal agreement between Seoul and Washington in July, based on which the U.S. would lower tariffs imposed by Trump on South Korean goods, in return for a $350 billion investment.

The agreement is yet to be put on paper, due to disagreements regarding how the investments would be managed. According to Lee, the East Asian giant is now seeking “commercial reasonableness” for its investments, but adds that it remains the “biggest obstacle.”

Lee adds that as of now, the proposals that are on the table “provide no assurance of commercial viability,” resulting in the agreement being held up.

Seoul Not In Same Position As Tokyo

Commerce Secretary Howard Lutnick said recently that South Korea should follow Japan’s trade deal with the United States, adding that Seoul should either accept the deal or pay the tariffs.

See Also: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

Lee countered this, saying that South Korea is not in the same position as Tokyo, which has more than double Seoul's $410 billion foreign exchange reserves, an international currency in the yen, and a U.S. swap line. “I believe that between blood allies, we will be able to maintain the minimum amount of rationality,” he said.

Hyundai Immigration Raid ‘Not Intentional’

Trade talks were further strained by the recent Immigration and Customs Enforcement raids on Hyundai Motor Co.’s (OCT: HYMTF) battery manufacturing facility in Georgia. Lee said that South Korean’s were naturally angered by the “harsh” treatment of workers, but added “I do not believe this was intentional, and the U.S. has apologised for this incident.”

According to U.S. Attorney Margaret Heap, the raid was aimed at reducing “illegal employment” and to “prevent employers from gaining an unfair advantage by hiring unauthorized workers.”

Story Continues

Photo Courtesy: IAB Studio on Shutterstock.com

Trending Now:

An EA Co-Founder Shapes This VC Backed Marketplace—Now You Can Invest in Gaming's Next Big Platform ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share.

Building Wealth Across More Than Just the Market

Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That's why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, professional financial guidance, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn't tied to the fortunes of just one company or industry.

Arrived Homes

Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.

Worthy Bonds

For those seeking fixed-income style returns without Wall Street complexity, Worthy Bonds offers SEC-qualified, interest-bearing bonds starting at just $10. Investors earn a fixed 7% annual return, with funds deployed to small U.S. businesses. The bonds are fully liquid, meaning you can cash out anytime, making them attractive for conservative investors looking for steady, passive income.

IRA Financial

Self-directed investors looking to take greater control of their retirement savings may consider IRA Financial. The platform enables you to use a self-directed IRA or Solo 401(k) to invest in alternative assets such as real estate, private equity, or even crypto. This flexibility empowers retirement savers to go beyond traditional stocks and bonds, building diversified portfolios that align with their long-term wealth strategies.

SoFi Alt Investments

SoFi gives members access to a wide range of professionally managed alternative funds, covering everything from commodities and private credit to venture capital, hedge funds, and real estate. These funds can provide broader diversification, help smooth out portfolio volatility, and potentially boost total returns over time. Many of the funds have relatively low minimums, making alternative investing accessible.

Range Wealth Management

Range Wealth Management takes a modern, subscription-based approach to financial planning. Instead of charging asset-based fees, the platform offers flat-fee tiers that provide unlimited access to fiduciary advisors along with AI-powered planning tools. Investors can link their accounts without moving assets, while higher-level plans unlock advanced support for taxes, real estate, and multi-generational wealth strategies. This model makes Range especially appealing to high-earning professionals who want holistic advice and predictable pricing.

American Hartford Gold

For investors concerned about inflation or seeking portfolio protection, American Hartford Gold provides a simple way to buy and hold physical gold and silver within an IRA or direct delivery. With a minimum investment of $10,000, the platform caters to those looking to preserve wealth through precious metals while maintaining the option to diversify retirement accounts. It's a favored choice for conservative investors who want tangible assets that historically hold value during uncertain markets.

This article Trump's $350 Billion Investment Demand Could Trigger 1997-Style Financial Crisis, Says South Korea's President originally appeared on Benzinga.com