Gyeonggi Province Governor Kim Dongyeon has expressed strong opposition to U.S. President Trump’s remarks about a “$350 billion upfront investment in the United States.”
On the 27th, Governor Kim posted on his social media, stating, “We must not accept tariff negotiations with the United States or a Korean version of the Plaza Accord,” and warned, “Forty years ago, the Plaza Accord led Japan to its ‘lost 30 years.’”
He continued, “If we accept the Trump administration’s unilateral demand for a cash investment in the U.S., South Korea will also open the door to its own lost 30 years,” emphasizing, “Above all, it is impossible to raise $350 billion in cash.”
He further explained, “South Korea’s $410 billion in foreign exchange reserves are precautionary assets prepared for times of national crisis. These are held in various financial instruments such as U.S. Treasury bonds, gold, foreign currency deposits, and IMF positions, and are not cash that can be immediately withdrawn,” reiterating, “It is simply not realistic to use foreign exchange reserves for a direct investment of $350 billion.”
He particularly expressed concern, saying, “An even bigger problem lies in the foreign exchange and stock markets. President Trump’s ‘$350 billion upfront’ remark last Friday caused the won’s exchange rate to soar and sent the domestic stock market reeling.”
He added, “Another issue is the requirement to retain 90% of investment returns within the U.S. In effect, this is no different from being asked to buy perpetual U.S. bonds, and we cannot invest in a structure where it is impossible to recover our funds.”
Regarding President Trump’s excessive demands, Governor Kim said, “Twisting the arm of an ally is an act of self-harm for the U.S. as well,” and advised, “If America wants to be great again (MAGA), it needs to embrace its allies, and a win-win approach is possible, not a zero-sum one.”
He also stated, “America’s manufacturing renaissance can only be realized when combined with Korea’s manufacturing capabilities. Only South Korea possesses all the advanced manufacturing capabilities the U.S. desires, including semiconductors, secondary batteries, automobiles, and shipbuilding.”
He continued, “What the U.S. needs right now is not ‘quantitative investment’ but ‘qualitative investment.’ Our government is taking the right direction in negotiations with the U.S., and the request for a currency swap was very appropriate.”
Governor Kim asserted, “We must negotiate to keep the scale of direct investment at an appropriate level and extend the investment period as much as possible to minimize the impact on the foreign exchange and financial markets,” adding that this is “a crucial negotiation that will determine the fate of the Korean economy.”
Governor Kim especially warned against indiscriminate political attacks, saying, “Now is not the time for political offensives that pressure acceptance for the sake of criticizing the government. Instead, we must support President Lee Jaemyung and the negotiation team.”
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