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Kim Yong-beom, Director of Policy at the Presidential Office (center), and Kim Jung-kwan, Minister of Trade, Industry and Energy (right)

 

According to government sources, our government set the standard for direct cash investment of $70 billion, 20% of the $350 billion, and the remainder to be covered through guarantees and loans. The overall proportion of cash direct investment was raised to around 20%, partially accommodating U.S. demands, while extending the investment period as much as possible to minimize the annual dollar expenditure from Korea's foreign exchange reserves. If $70 billion is invested in installments over ten years, the annual investment amount would be $7 billion, which is considered the last line that does not shock the foreign exchange market. This is considered the last line. According to the Bank of Korea, as of the end of September, foreign exchange reserves stood at $422 billion, of which 89.7% (89.7%) came from securities such as bonds, totaling $378.4 billion. This is interpreted as an intention to maximize the use of interest and dividend income generated from this, while partially sourcing the shortfall from the market. Minister of Industry and Trade Kim Jeong-kwan returned to Korea after negotiating with U.S. Secretary of Commerce Howard Rutnick on the 20th, and the U.S. demand for a '$200 billion investment over 8 or 10 years' is still It is said to be a burdensome level. If the investment is divided over 8 years, it would require annual expenditures of 25 billion dollars, and even for 10 years, 20 billion dollars per year. Although the U.S. side seems to have demanded a maximum amount that the Korean foreign exchange market can tolerate, even if the 8-year phase period is set, shocks to the foreign exchange market are inevitable. Even with a 10-year period, the annual return on foreign exchange reserves will inevitably expose the foreign exchange market to volatility. Ultimately, a government official said, "Even if the U.S. demands are strong, if it exceeds the limits we can bear , it will be difficult to accept," adding, "More discussion is needed." I thought they would hold out without ??? thinking they would eventually have to invest in the U.S.,,,, but now they have to listen to those thugs!!!!!!