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South Korea’s trade deal with Trump could sink its currency and trigger a financial crisis
['Mon', 'September', 'At Pm Gmt', 'Min Read']
Yahoo Finance
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.
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.