President Lee Jae-myung speaks at the 100-day inauguration press conference, "100 Days for Recovery, Growth for the Future," held at the Blue House Guest House on September 11. 2025.9.11. Yonhap NewsPresident Lee Jae-myung stated at a press conference held at the Yongsan Presidential Office on the 11th that he "did not sign anything against national interest" and revealed that he rejected excessive demands from the U.S. This statement comes as discussions about potential similar compromises for South Korea emerge following the recent release of the Japan-U.S. agreement.

In early September, Japan agreed to lower automotive tariffs from the existing 25% to 15% through negotiations with President Trump, in exchange for a commitment to invest approximately $550 billion in the U.S. According to the agreement document released by Japan's Ministry of Economy, Trade and Industry, this investment included financial support through loans and guarantees from the Japan Bank for International Cooperation (JBIC), as well as expansion of local factories and increased employment by private companies such as Toyota and Honda. Furthermore, by simultaneously increasing imports of U.S. agricultural products, an exchange structure of "agriculture/investment ↔ automotive tariff deferral" was established.

In contrast, reports have followed indicating that South Korea was asked for a one-time cash payment of $350 billion during the negotiation process. Without denying this, the President effectively formalized his refusal by stating, "There is nothing signed against national interest." This clarified that the South Korean government could not accept the terms, which were far more aggressive compared to those imposed on Japan and the EU.

Foreign policy experts point to several factors behind the U.S.'s strong cash demand specifically from South Korea: △ the structure of South Korea's trade surplus with the U.S. △ South Korea's concentration in advanced industries such as semiconductors and batteries △ and Trump's unique negotiation style. A former Deputy Minister for Trade stated, "This is Trump's brinkmanship tactic, exploiting South Korea's reliance on specific industries," and predicted, "In actual negotiations, it is highly likely to result in measures for increased investment and employment, similar to Japan."

Indeed, Hyundai Motor, LG Energy Solution, Samsung SDI, and SK On are already undertaking battery and automotive investments worth tens to hundreds of billions of dollars in the U.S., and Samsung Electronics has invested heavily in its Texas foundry. These investment plans can be put on the negotiation table as a "basis for tariff reduction."

However, President Trump's future pressure tactics are also considerable. He has repeatedly stated, "There will be no deals that cheat America," and may resort to retaliatory measures if necessary, including △ re-imposing automotive tariffs △ reducing tax credits for semiconductors and batteries △ and withdrawing investment incentives. A diplomatic source warned, "Given that the President has directly rejected the MAGA strategy, there is significant room for Trump to exert further pressure."

Domestic political and economic repercussions are also unavoidable. The ruling party welcomed the President's "national interest first" message, but the business community expressed concerns that prolonged negotiations could increase investment uncertainty. The opposition party criticized, "Ultimately, there is no choice but to reach a compromise on par with Japan and the EU, and the President has unnecessarily invited a head-on confrontation."

The diplomatic community commented, "Considering the precedent of Japan and the EU concluding agreements with institutional and industrial concessions instead of cash, it is highly likely that South Korea will reach a similar conclusion," and assessed, "The President's remarks are a signal to block unreasonable cash demands and move towards a rational compromise." However, at the same time, there is a growing sense of tension, with expectations that "Trump's next move will determine the course of negotiations."

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