Korean media: South Korea-US tariff negotiations face difficulties ... Pro-Min (Lee Jae-yong) figures criticize Trump's "nonsense"

Voices of the "autonomy faction" in the ruling circle are rising

Currently, South Korea-US tariff negotiations are stuck due to differences over a $350 billion investment fund for the US and its implementation method, with the ruling circle continuously making strong statements against the US. The prolonged tariff negotiations have pushed up the exchange rate of the dollar against the Korean won, and at a time when the Korean economy is being affected, they seem to be deliberately emphasizing the US's excessive demands to avoid the "government responsibility theory," while also pushing forward the negotiations with the US. However, there are concerns that unfiltered information might instead cast a shadow on the Republic of Korea-US relationship.

"Pro-Min organization strongly condemns the US government"

On the 27th, members of the "Common People's Reform Conference" organized by hardline pro-Min (pro-Lee Jae-yong) figures inside and outside the Democratic Party issued a commentary titled "Demanding prepayment of $35 billion cash, does the Trump administration want South Korea to go bankrupt?" stating, "We strongly condemn the actions of the US government that damage national sovereignty through unreasonable tariff negotiations." The commentary was a response to remarks made by US President Donald Trump on the 25th, who stated, "South Korea's $35 billion investment in the US is 'prepayment'."

It has been reported by foreign media that US Commerce Secretary Howard Lutnick asked South Korea to increase its investment in the US to more than $35 billion, with a significant portion paid in cash. The commentary cited this report as "nonsense." The commentary also said, "It seems the US mistakenly treats South Korea, an ally in both security and economics, as its own [vassal state]." It further stated, "We will stand at the forefront of defending the sovereignty of South Korea's national economy as a single unit."

According to reports, the Common People's Reform Conference is regarded as "a loyal organization of President Lee Jae-yong." Not only do internal party issues get communicated with President Lee, but major national policy issues are also discussed with him at any time. The core content of this commentary also aligns with President Lee's negotiation strategy.

In an interview with Reuters on the 22nd, President Lee Jae-yong stated, "If South Korea were to take out $35 billion in cash and fully invest it as per the US side's requirements without a currency swap agreement, it would face a situation similar to the 1997 financial crisis." The Common People's Reform Conference's commentary also stated that if South Korea followed the US's proposal, it would "face a second foreign exchange crisis." The commentary further noted, "The South Korean government must absolutely not accept the unreasonable demands of the Trump administration. In addition, we should quickly sign an indefinite currency swap agreement with the United States and Japan to establish a currency security mechanism."

Expressing the sentiments of the mainstream "autonomy faction" within the ruling circle

Regarding this, a former senior official said, "The comments from the Common People's Reform Conference seem to express the sentiments of the 'autonomy faction' within the ruling circle," "Diplomats like National Security Advisor Choi Young-jin and Foreign Minister Cho Hyun-wook, who are part of the 'alliance faction,' are trying to manage the Republic of Korea-US relationship to prevent it from breaking down, creating a contrast with their approaches."

On the 27th, Choi Young-jin, during an interview with the media, stated, "From an objective and realistic perspective, $35 billion is beyond the capacity of South Korea," "No one, regardless of political affiliation, can do this, so we are trying to bring alternative solutions to the table and are negotiating alternative solutions." Cho Hyun-wook, in an interview published by AP on the same day, regarding the previous incident involving Korean workers detained in Georgia, said, "It is fortunate that the (visa issue) is expected to be resolved." He did not criticize the US side, but instead took a restrained approach.

However, in recent times, voices of the "autonomy faction" within the ruling circle, who prioritize inter-Korean relations over the Republic of Korea-US alliance, have been growing. On the 26th, former Minister of Unification and current Democratic Party advisor Jeong Sei-hyun, at a seminar attended by party leadership, stated: "[This may not be liked by the US, the US says it doesn't like it], there are too many so-called alliance supporters around the president saying such things."

This is beginning to influence how President Lee Jae-yong handles unresolved issues. On the 21st, before his visit to the US, President Lee Jae-yong posted on Facebook: "Some people think that autonomous defense cannot be achieved without foreign troops, and this kind of submissive thinking is problematic." His intention was to emphasize "autonomous defense," but some may interpret it as not needing "US troops in South Korea."

The diplomatic community is concerned: "Politicians stoking anti-American sentiment for domestic audiences may lead to worsening negotiations with the US, which could ultimately become irreversible." A diplomatic source said, "Using domestic public opinion as a leverage is also a negotiation method, but the other side is a stubborn President Trump," "To avoid losing out, we need to calmly advance negotiations with the US." In other words, we must always remember the possibility that firm statements against the US could provoke the US government to impose higher tariffs on South Korea or take other measures.

Source: Chosun Ilbo

Original: www.toutiao.com/article/1844649836030985/

Statement: This article represents the views of the author."