PPP, Tariff Deal "Uncertainty Resolved, But…Increased Direct Investment Poses a Burden"

"Results are an Illusion" · "US Already Saying Differently"… "National Assembly Consent Required Upon Disclosure of Details"

PPP Leader Jang Dong-hyuk Speaking at Supreme Council (Seoul=Yonhap News) Reporter Kim Ju-seong = People Power Party leader Jang Dong-hyuk is speaking at a Supreme Council meeting held at the National Assembly in Yeouido, Seoul, on October 27. 2025.10.27 utzza@yna.co.kr

On the 30th, the People Power Party (PPP) acknowledged the significance of resolving trade uncertainties following the surprise agreement on detailed tariff negotiation terms between South Korea and the US during the summit. However, they downplayed the outcome itself, calling it "a surge in direct cash investment" and an "illusion."

Furthermore, regarding the government's mention of enacting a special law for US investment as a follow-up measure to the tariff negotiations, they stated their position that a judgment will be made only after the overall details of the agreement are disclosed.

At a Supreme Council meeting held at the National Assembly, PPP leader Jang Dong-hyuk said, "We are relieved that the uncertainty has been resolved," but added, "This agreement signifies that the burden begins now. Above all, the public must be accurately informed whether the disclosed content is the entirety of the agreement."

He pointed out, "Already, statements from the US are emerging that differ from our announced content," and warned, "If the US's announcements and ours diverge, we may end up facing greater problems by trying to cover the sky with our palms."

Floor Leader Song Eon-seok stated, "It is fortunate that some of the uncertainty in our economy has been resolved, albeit late," but emphasized, "However, the agreement document has not yet been released, and the details are unknown, so we must be cautious in our evaluation."

He then criticized, "The agreement for US investment of $350 billion, a substantial amount relative to our economy, is inherently problematic." He added, "The government claims to have put in place 'various safety measures,' but these only mitigate shocks to the foreign exchange market, not reduce the burden on the public."

Regarding the agreement for $200 billion in cash investment, he recalled the government's initial proposal of "15 billion dollars over 10 years, totaling 150 billion dollars in cash investment." He expressed disappointment, stating, "Ultimately, except for the change from Trump's assertion of cash upfront payments to some installment payments, the total amount remains the same."

Concerning the agreement for a 5-to-5 profit sharing between South Korea and the US until the principal is recovered, he commented, "We initially argued for a 9-to-1 split, with us taking 90%, but the outcome has been decided according to the US's demands."

He also raised concerns about the investment selection process, stating, "The method for selecting investment targets is also uncertain. It's described as 'investments made in good faith with commercial rationality,' which allows for arbitrary interpretation." He further argued, "The burden on the foreign exchange market and exchange rate management has also increased. If the annual yield on our $410 billion in foreign exchange reserves, which is around 5%, means we have to send the entire 5% yield to the US every year by paying $20 billion annually, it's a significant outflow."

Assemblyman Kim Keon, who previously served as the Special Representative for Korean Peninsula Peace and Security Affairs at the Ministry of Foreign Affairs, said, "In July, it was explained that most of the $350 billion was in guarantees, with only 5% in direct cash investment." He added, "Compared to the government's initial explanation, direct investment has significantly increased, and it is indeed a burden on our economy."

He then referenced President Trump's remarks about the $350 billion being an upfront payment, saying, "There is an illusion in the negotiation results," and concluded, "I don't think it's something we can be so satisfied with."

Meanwhile, Chief Spokesperson Choi Bo-yun met with reporters after the Supreme Council meeting and addressed the National Assembly's consent on the South Korea-US tariff negotiations, including the special law for US investment. She stated, "Information disclosure on the agreed-upon details must precede any decisions, and now the burden begins, and the government must manage it well. We need to confirm what measures the government has in place first." Yonhap News