"President Donald Trump's demand that Seoul hand over $350 billion in cash could devastate South Korea's financial markets and economy. In July, Korea agreed to invest $350 billion in the U.S., in exchange for Washington setting a 15% tariff rate. But not all the details were spelled out at the time, and both sides have been in negotiations to finalize the deal, with tensions ramping up lately."
"Korea has also pointed to major differences with Japan and why the terms of Tokyo's $550 billion investment pledge shouldn't be applied in the same way. For instance, Japan has more than triple Korea's currency reserves at $1.3 trillion. The yen is also a much more international currency, accounting for 17% global market share versus just 2% for the won."
President Donald Trump has demanded that South Korea transfer $350 billion in cash to the United States after Korea pledged $350 billion in U.S. investment for a 15% tariff rate. Seoul warns that withdrawing $350 billion would strain its $410 billion foreign-exchange reserves and could send the won into a tailspin similar to the 1997 crisis. Korea requests a dollar swap line from the Federal Reserve to provide liquidity and avoid jolting foreign-exchange markets. Seoul points out differences with Japan: Tokyo holds $1.3 trillion reserves and the yen is far more internationally used than the won.
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