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South Korea and Japan Slam Trump’s Billion-Dollar Funding Demands as Pure Fantasy

South Korea and Japan Slam Trump’s Billion-Dollar Funding Demands as Pure Fantasy

Published:
2025-09-29 05:00:49
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South Korea and Japan call Trump’s billion-dollar funding demands unrealistic

Asian financial giants call out unrealistic economic demands that would make even crypto whales blush.

Diplomatic Shockwaves

Tokyo and Seoul unite in rare agreement—billion-dollar requests from overseas meet immediate resistance. Financial ministers from both nations privately call the figures "detached from economic reality."

Numbers Don't Lie

The demanded funding—we're talking billions here—would require printing money faster than meme coin launches during bull season. Regional analysts note the proposal lacks even basic fiscal scaffolding.

Global Finance Reacts

Markets barely flinch at the news, proving once again that traditional finance moves slower than Bitcoin confirmation times during network congestion. One Tokyo-based fund manager quipped: "At least when crypto projects ask for billions, they deliver whitepapers first."

Sometimes the most expensive proposals come with the cheapest math—welcome to international finance, where the numbers are made up and the fundamentals don't matter.

Washington prefers cash over loans

According to reports, US Commerce Secretary Howard Lutnick has informed South Korean officials that Washington wants the investment in cash instead of loans.

Wi indicated the government is looking at other options and remains hopeful about achieving progress during the upcoming meeting between the two leaders at the APEC Summit in Gyeongju next month.

In a related matter, Korea’s Finance Minister Koo Yun-cheol informed reporters on Saturday that he has completed discussions with the US on foreign exchange issues and will announce specifics soon.

A presidential official later clarified that Koo’s comments relate to the US Treasury’s report on currency policies of its major trading partners.

Japan’s investment mechanism remains murky

In Japan, the Asian country has accepted the $550 billion investment arrangement as part of an agreement with the US to lower tariffs on Japanese exports to 15%, but the funding mechanism remains unclear.

A memorandum of understanding the both countries signed at the start of September indicated that once TRUMP has picked investment projects for Japan to finance, the country has 45 business days to come up with the funds.

The sum must be deposited into the account or accounts designated by the US in dollars.
However, Japan’s chief trade negotiator Ryosei Akazawa has since maintained that JBIC and NEXI, the two organizations primarily responsible for funding the investments, will not provide money for projects that do not benefit Japan. Akazawa said he does not anticipate the investment mechanism will significantly impact Japan’s government finances because it will be executed according to existing laws that govern JBIC and NEXI.

The Japanese trade negotiator has previously contended that only 1-2% of the $550 billion mechanism will be actual investment, with the remainder consisting of loans and loan guarantees.

The LDP is scheduled to hold a vote for its next leader on Oct. 4. Takaichi and Agriculture Minister Shinjiro Koizumi are the two leading candidates in the race that will likely decide who becomes Japan’s next prime minister.

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