South Korea Warns U.S. Trade Demands Could Trigger Financial Instability

South Korean President Lee Jae-Myung has raised alarms over potential economic fallout from U.S. trade negotiations, drawing parallels to the 1997 Asian financial crisis. The stalled talks center on Washington's demand for $350 billion in cash transfers—a MOVE Lee likened to "a neighbor demanding money at the door."

The proposed deal, tentatively agreed in July, WOULD reduce U.S. tariffs on South Korean exports in exchange for the massive capital injection. But Seoul insists on safeguards, including swap-line agreements, to prevent dollar shortages that could destabilize its economy. "Without these measures," Lee warned, "we risk reliving the IMF bailout scenario."

The standoff reflects broader tensions over economic sovereignty, with Korea refusing to cede investment decision-making to Washington. The outcome could ripple through Asian markets, though no direct cryptocurrency implications were cited.