South Korea and Japan Call Trump’s Billion-Dollar Demands Unrealistic

President Donald Trump’s push to secure massive financial commitments from key Asian allies is running into strong resistance. Seoul has openly stated it cannot meet the $350 billion cash demand, while in Japan, leading voices warn the $550 billion deal may need to be reopened if it fails to serve Japan’s interests.

South Korea Rejects Cash Payment South Korea’s National Security Adviser Wi Sung-lac said in a Saturday interview with Channel A that Washington’s demand is simply unrealistic.

“Objectively and realistically, we cannot handle such an amount. This is not a negotiating tactic, but a simple fact,” Wi said. His comments were a direct response to Trump’s description of the commitments from Japan and South Korea as “up front” payments. In July, Seoul and Washington reached an agreement on a $350 billion investment as part of a broader trade arrangement that lowered U.S. tariffs from 25% to 15%. Yet the two sides remain divided over whether the investment should take the form of cash, loans, or other structures. Prime Minister Kim Min-seok has already warned that without a currency swap agreement with the U.S., such a massive investment could severely damage South Korea’s economy — the figure equals more than 80% of the country’s foreign currency reserves.

Japan: Renegotiation May Be Necessary Tokyo is also showing signs of unease. Sanae Takaichi, the frontrunner to become leader of the ruling party and potentially the next prime minister, suggested over the weekend that Japan must be ready to renegotiate if the deal proves unfavorable. “Japan must not back down if certain aspects of implementation turn out to be unjust or disadvantageous. That includes the possibility of renegotiation,” Takaichi said. Trump’s administration insists the $550 billion investment must be deposited in U.S.-designated accounts within 45 business days of project selection. However, Japan’s chief negotiator Ryosei Akazawa stressed that state-backed agencies JBIC and NEXI will not fund projects that do not directly benefit Japan. He argued that only 1–2% of the total mechanism would be actual investments, with the rest consisting of loans and guarantees.

Political Dimension: APEC and Tokyo Leadership Change Further negotiations are expected during the APEC Summit in Gyeongju, South Korea, in November, where Trump will meet Asian leaders to seek progress. Both Seoul and Tokyo are hoping for a compromise model that won’t destabilize their economies. Meanwhile, Japanese politics adds another layer of uncertainty. The ruling Liberal Democratic Party will elect its new leader on October 4. The two frontrunners, Sanae Takaichi and Agriculture Minister Shinjiro Koizumi, are battling for the position that will likely determine Japan’s next prime minister.

#TRUMP , #SouthKorea , #USPolitics , #Geopolitics , #economy

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