Judicial Costs Alone 600 Billion Won for Trump, 4.6 Trillion Won 'Jackpot' Longed For Relentlessly

$3.5 Billion Stake in 'Truth Social' IPO
Urgent Need to Secure Appeal Deposit and Election Expenses

Former U.S. President Donald Trump, who is facing financial difficulties due to a court deposit of around 600 billion won, could hit a 'jackpot' worth 4.6 trillion won, the Wall Street Journal (WSJ) reported on the 20th (local time).

As Trump's social media (SNS) platform 'Truth Social' prepares for its IPO, its corporate value is expected to reach approximately $6 billion (about 7.9632 trillion won). Truth Social was created by former President Trump after his major SNS accounts such as Facebook and X (formerly Twitter) were blocked following the 2021 Capitol riot.

Former U.S. President Donald Trump [Image source=Yonhap News]

Truth Social's parent company, Trump Media & Technology Group, plans to go public through a merger with a Special Purpose Acquisition Company (SPAC). WSJ predicted that the merger between Truth Social and the SPAC, Digital World Acquisition, would likely pass smoothly in the shareholder vote on the 22nd. Supporters of former President Trump have been purchasing SPAC shares as a show of support.

The stock price of Digital World Acquisition rose 18% that day, closing at about $43. If this trend continues, Truth Social's corporate value will reach $6 billion. Depending on the shareholder approval rate, former President Trump will hold at least 58.1% of the shares.

WSJ stated, "If it goes public, former President Trump will gain a 'windfall' of $3.5 billion (about 4.6459 trillion won), easing financial pressure and strengthening his election campaign."

Julian Klimovichko, founder of Accelerate Financial Technologies, said, "There seems to be an implicit agreement among shareholders that as Trump's political momentum strengthens, the stock should trade at a higher price," adding, "It is more like a political ledger and a semi-betting tool on the election."

Former President Trump currently needs to raise a court deposit of $454 million (about 602.6 billion won) by the 25th of this month to proceed with the appeal trial for allegations of asset inflation fraud. However, Trump's legal team claims that despite contacting 30 guarantee companies, it is impossible to secure the deposit.

Political fundraising for the presidential election must also accelerate. According to The New York Times (NYT), President Joe Biden's campaign raised more than $53 million (about 7.04 billion won) last month and holds $155 million (about 205.7 billion won) in cash. In contrast, the Trump campaign held about $40 million (about 5.31 billion won) as of the end of January. Not only is there a significant difference in amounts, but unlike Biden's camp, which spends all funds on the election campaign, a considerable portion of Trump's funds is used for legal costs. Last year alone, more than $55 million (about 7.3 billion won) was spent on legal fees from the raised funds. In this situation, if Truth Social successfully goes public, it could provide much-needed relief to the financially strained Trump campaign.

However, WSJ noted, "The outcome of the shareholder vote and the final compensation that former President Trump will receive remain uncertain." Trump is required to hold the shares for six months, meaning they cannot be liquidated until the end of September. According to regulatory documents, he may request an exemption to sell shares or use them as collateral for loans. However, it is unclear whether bond guarantee insurers will accept the shares as collateral. WSJ also reported that expectations that Trump might sell shares as quickly as possible could cause the stock price to fall.

This content was produced with the assistance of AI translation services.