AsianFin -- South Korea’s economy could face turmoil comparable to the 1997 financial meltdown if the government complies with current U.S. demands in stalled trade talks without proper safeguards, President Lee Jae Myung said.

In July, Seoul and Washington reached a verbal agreement in which the U.S. would reduce tariffs imposed under President Donald Trump on South Korean goods, in exchange for $350 billion in investment from South Korea, among other commitments. However, the deal has not yet been formalized due to disagreements over how the investments would be structured, Lee said.

“Without a currency swap, if we were to transfer $350 billion as the U.S. is demanding and invest it entirely in cash in the U.S., South Korea could face a situation similar to the 1997 financial crisis,” Lee said through a translator.

In a Friday interview, Lee also addressed recent large-scale U.S. immigration raids detaining hundreds of Koreans, as well as South Korea’s relations with North Korea, China, and Russia.