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South Korea's President says US investment demands would spark financial crisis

Yoric

I remember some estimates made after the US elections of what Stephen Miller's policy would cost. According to these estimates, following Miller's plan would require more or less the entire world's GDP to be invested in the US for several consecutive years. Obviously, this would require more than a little bullying to get there.

So far, we got the bullying, plenty of non-binding agreements, 100% of goodwill and soft power loss, increased soft power for China, a looming financial crisis, two wars between major powers getting closer by the day. We'll see whether the investments are coming, too.

pjc50

It's a personal shakedown. What they're actually asking for is this: https://www.theverge.com/news/737757/apple-president-donald-...

Being an unreasonable, unmeetable deal on paper is just a feature. You're not supposed to meet the text of the deal. You're supposed to get under the table and ask "how can we facilitate this?" while palming a hundred dollar bill. It's like a police shakedown in less stable countries.

A more serious question for Korea is the US military protection against North Korea and/or China. They may yet end up in the unthinkable alliance with their historic enemy, Japan.

palmfacehn

Lee Jae-myung is seeking closer relations with the PRC. I view it as part of the missing context to this spat. These events preceded the US administration's actions.

https://world.kbs.co.kr/service/news_view.htm?Seq_Code=18451...

mnky9800n

Is almost like a foreign agent is in charge.

reeredfdfdf

Yep, most things Trump does make sense if we assume he's a Russian puppet. Russia really wants to divide West, to keep world hooked on fossil fuels, and to undermine democracy everywhere.

WJW

The things Trump does *also* make sense if you assume he's not a Russian puppet. He also wants to divide Europe against itself, keep the world hooked on (US) fossil fuels and to undermine threats to his rule. He doesn't need Russia for that, but their interests do sometimes align and it would be stupid not to take advantage of it.

WJW

There are plenty of other explanations that fit the facts. This whole "Trump is a foreign agent" thing is just like the "twin towers were brought down by the CIA" conspiracy: people don't want to believe their own country could be so broken as to let this happen, and so it must have been some planned action by a group they hate.

AndyMcConachie

Trump is 100% American.

I wish people who said things like this, or who believed that Trump is/was a Russian agent could see how silly and racist they look. America's problems are not caused by foreigners. They're caused by Americans.

The xenophobia exhibited by sentiments such as this simply demonstrate hatred and ignorance of the world outside of the USA, and demonstrate an incapacity to critically evaluate American culture and history.

watwut

Russia has puppet states and is actively working on building them. Russia is actively trying to influence elections in foreign countries too. Trump being suspect Russian puppet is not xenofobia, it is completely consistent with what Russia is and who Trump is.

trhway

> to be invested in the US

to invest in US (i.e. to buy a piece of US) one has to sell something to US to get dollars while not buying US products in return, ie. an US trade deficit is needed. And that at the same time while US is introducing tariffs to reduce the said trace deficit.

Yoric

We live in an economy that is highly virtualized, where the same unit of currency can be used several times simultaneously to borrow, lend, re-borrow, etc. so I'm not sure it's that simple.

trhway

If the US gets invested with such "virtual" ("out-of-thin-air", newly issued, etc.) dollars i guess it would be even worse as it would only inflate prices in US while not doing anything else.

kronicum2025

You assume that the current admin is not simply asking for gifts.

8bitsrule

Crazy request of $350 billion investment by SK. That's 20% of it's estimated 2025 GDP of $1700 billion. Could the US pledge 20% (6000 billion) to some other country?

Awfully nice of Myung to be so understanding after the US arrest of 300+ SK workers in Georgia a month ago.

mrtksn

> Could the US pledge 20% (6000 billion) to some other country?

Of course US can do that, it can provide a temporary boost to the leader of that country. It doesn't mean anything other than that.

Qatar pledged 1 trillion dollars investment in US: https://www.whitehouse.gov/fact-sheets/2025/05/fact-sheet-pr...

Their GDP is 200B USD. EU is similar, on 200B Budget they promised 600B investment.

As you can see, %20 of GDP investment is a rookie number. People do 3x to 5x of GDP these days.

I don't know why Koreans are making fuss of it, maybe they don't get the Western politics?

jampekka

> Could the US pledge 20% (6000 billion) to some other country?

Maybe to destroy it? :)

jabl

$6T is in the ballpark of the costs of the Afghanistan and Gulf War episode II (+subsequent occupation) foreign policy adventures.

Hilift

Completely impractical. Look at other countries. France and the UK are under enormous budget pressure, mostly due to the cost of funding the defense of the illegal war in Ukraine, but also due to other costly recent policy decisions. Both countries aren't considered poor, but they now have difficult decisions to make. That means anyone who thinks these investments such as these by any country can be from taxes or savings elsewhere are delusional. It would have to be loans.

Now look at Australia. It committed to a $368 billion ($1 billion per month for 30 years) submarine deal with the US. This program will never deliver any perceivable value to Australian people, it is more strategically beneficial for reviving a failing boat and ship building industry in the US. The US itself is supposedly building a new Columbia-class ballistic submarine at a cost of $110 each?

These are simply confabulated, made up numbers. And why is Korea building valuable, current generation facilities in other countries? It would make sense if it would result in for example, the sale of more Korean automobiles, but it isn't. It is basically a shakedown ("tribute").

https://www.theguardian.com/world/2025/jun/15/aukus-will-cos...

mettamage

Curious question: how is a war illegal? Isn’t that just… war?

Or at least, most wars seem to be like that. Rarely is there the case where 2 countries consent to have war with each other. There always seems to be someone that aggresses and someone that is forced to defend. For if they wouldn’t then they face subjugation or worse.

justincormack

Thats not the primary budget issue in France and UK.

phatfish

Pretty sure the cost of helping Ukraine is pocket change compared to the rise in welfare payments since COVID and the "triple lock" to keep pensioners minted.

epolanski

> mostly due to the cost of funding the defense of the illegal war in Ukraine

What is a "legal" war supposed to be?

randunel

A war would be legal when the _casus belli_ leading up to it would be a non-military action.

For example, Egypt might have casus belli if Sudan stopped the Nile's flow, a non military action with significant impact.

jltsiren

War is illegal under the international law for all UN member states. The main exceptions are self defense or when authorized by the UN Security Council.

Of course, nobody really cares about that.

trhway

>It committed to a $368 billion ($1 billion per month for 30 years) submarine deal with the US. This program will never deliver any perceivable value to Australian people

Ukrainians thought the same giving up nuclear weapons, and getting rid of a lot of other weapons, including old 300km range ballistic missiles, and selling off new missile development to Saudis or something like this - the kind of weapons mere presence of which would have affected the Russia's invasion calculations.

May be Australia would be better served by strategic weapons other than the submarines, yet i don't think Australia can avoid getting such strategic weapons or can get similar level of strategic defense cheaper.

OneDeuxTriSeiGo

Subs are definitely australia's best choice here. Subs are king of the ocean and are by far the best tool for enforcing territorial claims and warding off harassment of domestic vessels or harassment along international trading lanes at sea.

iddan

Arrest of illegal workers that is

WastedCucumber

Do you have a source describing the "illegality"? This is genuine question - I have not found a source digging into the legal question.

The best I could find was a suggestion that their visa waivers were in fact correct for the purpose, except for the fact that their companies were using visa waivers over and over again. Or maybe the workers were? I'm not sure.

jjani

Hope you speak Korean! Straight from the horse's mouth. [0] The companies themselves were well aware they were working illegally. People were even doing visa runs to chain them, it doesn't get much more blatant then that.

It's pretty obvious and not a real point of contention. Being honest about this does not support the raid, and acting as if it does helps nobody and only hurts.

[0] https://www.teamblind.com/kr/post/%ED%98%84%EC%B0%A8-%EC%97%...

palmfacehn

You have posed a reasonable question with good intentions. A simple Google search reveals:

>U.S. authorities said some of the detained Korean workers had illegally crossed the U.S. border, while others entered legally but had expired visas or entered on visa waivers that prohibited them from working.

From PBS, a source with a well known editorial stance against the current administration.

https://www.pbs.org/newshour/world/south-korean-workers-retu...

>Like many of the Koreans who were working there, advocates and lawyers representing the non-Korean workers caught up in the raid say that some who were detained had legal authorization to work in the United States.

LA Times, similar

https://www.latimes.com/world-nation/story/2025-09-14/famili...

With any of these contentious partisan issues it is important to be wary of cherry picking. Typically events are selectively reported to fit a given partisan agenda.

It would be extreme to believe that entire groups are being arbitrarily detained and deported. Similarly, it isn't unreasonable to expect mistakes to be made. The reasonable thing to do with extreme claims such as the ones made in this thread is to do a simple Google search before engaging in partisan flames. It has become almost impossible to have a reasonable discussion here on any topic which may tangentially involve Trump.

saubeidl

Your word order seems a bit jumbled.

"Illegal arrest of workers" must be what you meant to say.

banku_brougham

this comment is troubling, as I understand they all had visas to work temporarily in building the facility

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antonvs

If that’s true, shouldn’t the “illegal” label more correctly apply to the activity of the company knowingly employing them? What do you believe the workers did wrong?

lmm

Visas are granted to individuals not companies. Working outside your visa status is illegal in most developed countries.

DaSHacka

Strange, how they always seem to 'forget' that part

Modified3019

What specific illegal activity was happening? Honest question, I’ve not seen any reference to such a thing before your and the other guy’s comment.

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Animats

On November 5, the Supreme Court will hear arguments on whether Trump even has the authority to impose tariffs. Nobody should make a deal until that's decided.

epolanski

To me, an European, what's troubling about US is the amount of power the presidential office has. It's reaching disturbing levels under this administration.

I'm Italian, used to our president mostly approving laws, commanding the armed forces (in theory, not in practice) and very few other things. And the best thing about our president is that it gets elected by the parliament requiring a very sensible majority. Thus pretty much all parties need to agree on one and they end up electing non-political figures (or politicians that have demonstrated high level of trust regardless of their party).

I think our system works great to be honest, and I already see the huge problems having an election-based president in Poland has with the government and president being from different parties and clashing with each other and the president vetoing for years a democratically elected government just to stir trouble.

pjc50

Italian system is multi-party system with hybrid proportional representation. Very different.

The US operates on a "separation of powers" FPTP winner-takes-all system: once one party has lined up control of both houses, the Presidency and the Supreme Court, they can do almost anything, and (thanks to SCOTUS control) without regard to constitutional legality.

The last remaining bulwark is the Democrat states, which is why Federal troops have been sent in to intimidate them.

cjs_ac

In practice, the system of government in the US most closely resembles the system of government in Britain prior to Robert Walpole becoming the first prime minister in 1721. American culture places too much emphasis on talking and not enough on listening - it's very easy to claim to have the best constitution in the world if you pay no attention to what anyone else has done in the past two and a half centuries.

broken-kebab

>president vetoing for years a democratically elected government

I guess the president is democratically elected too. Clashing between political parties is normal, and one can argue that a system which makes them limit each other is just fine. The current layout (parliament majority belongs to A, the president is of B) may reverse in future. And then the same people who now claim that president's vetoes should be abolished may start to see it in a very different light.

vintermann

One can argue that, if one doesn't look too closely how that "limiting of each other" tends to work in practice, and how it tends to work out in the end.

We have many, many examples of presidential republics, where both a president and a parliament have equal constitutional claim to represent the will of the people.

We see them reel from one constitutional crisis to another like a drunken sailor.

The US has fared comparatively well, as presidential republics go - so far. I don't know why, maybe because some groups have been more willing to yield to preserve the prestige of the institution as a whole. Given that it's the most prestigious presidential republic by a mile, that wouldn't be so surprising.

But it makes sense then, that this subservience will eventually get pushed further and further, until everything breaks.

kronicum2025

The problem is how difficult it is to remove someone once they are in power. In parliamentary democracies, it's simply loss of majority.

epolanski

> I guess the president is democratically elected too.

That's a bug, not a feature though.

What happens in practice is that you get president and government from different parties and they carry their political fights on instead of governing. The president vetoes the government just for the sake of sabotaging it for his parties political gains. We've had already multiple instances of president and government having almost independent foreign policies, crazy. Trump, e.g., has de facto been ignoring our prime minister Tusk (which by constitution should decide our foreign policy) and has been talking only with our president. And that's not on Trump, but our crappy Polish constitution for allowing this mess.

On top of that, governments are based on holding a majority votes, presidents just stay there whatever happens and whatever chaos they create.

I think that there should be a politically, democratically elected government whose job is to make laws, and the rest of institutions should be as bureaucratic and boring as possible, with as little political involvement as possible.

Again, I really like how in Italy or Germany the president is not involved into law and policy making. Ever noticed how all the countries that deviate towards autocracy...are all presidential based?

vintermann

Yes, who knows, maybe the Supreme Court Royale Of The United Monarchy will restrain the monarch.

curiousgal

Hes been stacking the Supreme Court for years, how do you think that will go?

shubhamjain

No one needs to make an investment. The playbook—as all countries are figuring it out—to navigate the crisis is simple: agree in principle to the demands, let the narcissistic toddler self-pat, brag about how fantastic of a deal maker he is. Stall, delay to make things official. Let it all die down slowly. Need more time? How about blatant corruption like approving Trump Towers, or gifting a corporate jet? Or make a token investment, just enough to let him brag again.

What every country is doing is buying time. Just enough till the next election or (hopefully) sooner.

hiddencost

Anyone playing for the next election isn't paying attention. Power has been seized, it will not be released.

xp84

It should definitely never be overlooked how easy to manipulate he is with flattery, and by tiny (by standards of whole nations' economies) bribes that enrich his family company directly.

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timeon

> What every country is doing is buying time. Just enough till the next election or (hopefully) sooner.

Is that enough? I do not think this is about one person. US seems to be changed.

butifnot0701

Also Trump asked for 90% of the profit from investment? If that's the case then that is not investment at all.

nosianu

Protection money. Pay or we will withdraw our military support.

psyklic

Also Trump asked to direct where the investment goes himself. It looks more like a gift than an investment.

derelicta

It's a shame SK is a vassal state. Koreans deserve better than serving thankless americans.