Opposition: "Tariff Deal Brings Relief, But Burdens Remain... U.S. Investment Is Not Optimal, Just the Maximum Feasible"

"Resolution of Uncertainty Is Welcome... Assessments Should Be Made with Caution"

The People Power Party, the Reform New Party, and other opposition parties have expressed relief over the conclusion of the South Korea-U.S. tariff negotiations, but assessed that significant burdens remain. They pointed out that challenges persist due to ongoing uncertainties regarding foreign exchange market instability and the recovery of investment returns.

Jang Donghyuk, leader of the People Power Party, offered a cautious assessment at the party’s Supreme Council meeting on the 30th, stating, “We are relieved to have resolved the uncertainty, but this is only the beginning of the burden. There are matters that the government and businesses must shoulder, so effective management will be crucial from now on.”

Yonhap News Agency

In particular, concerns remain regarding the scale of investment in the United States, which totals 200 billion dollars over ten years. Kim Geon, a People Power Party lawmaker and opposition secretary of the National Assembly Foreign Affairs and Unification Committee, told The Asia Business Daily in a phone interview, “It is fortunate that an agreement was reached, but agreeing to 20 billion dollars in direct investment annually is not necessarily the best outcome for us, but rather the maximum we could achieve.” He explained that, given the annual interest on South Korea’s foreign currency reserves amounts to 15 billion dollars, the investment will be a burden.

There were also concerns about a possible optical illusion regarding the outcome of the negotiations. While it is considered a success compared to U.S. President Donald Trump’s initial demand for a 350 billion dollar upfront payment, the investment scale has increased compared to the 5% (17.5 billion dollars) cash investment ratio mentioned by Kim Yongbeom, the presidential office’s policy chief, in July.

Concerns were also raised about the U.S. approval of nuclear-powered submarines. Lim Jongdeuk, a People Power Party lawmaker and member of the National Assembly Defense Committee, said in a phone interview, “It is quite significant in terms of strengthening national defense,” but added, “It will also entail increased defense spending to deter China’s expansion and higher costs for the U.S. military presence in Korea.” In addition, with the South Korea-China summit approaching, it is expected that China’s checks on South Korea will inevitably intensify.

The opposition parties agreed that, before making hasty assessments, unresolved issues following the conclusion of the negotiations must first be addressed. Enhancing the stability of the foreign exchange market was cited as a prime example. Song Eonseok, floor leader of the People Power Party, said, “Since all available foreign exchange earnings must be invested in the United States, our capacity for foreign exchange management will be limited. This in itself is a burden, and if speculative forces enter the market, concerns about instability will grow.”

There were also calls for greater clarity regarding the returns on U.S. investments. Lee Junseok, leader of the Reform New Party, stated at the party’s Supreme Council meeting, “Uncertainties still remain regarding the actual investment returns and the timing of principal recovery. During the National Assembly ratification process, thorough verification and in-depth discussions must take place.”

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