Group 1 - The core issue revolves around the U.S. demand for South Korea to provide a $350 billion "prepayment" investment, causing significant market concerns and pressure on the Korean won [1][2] - U.S. officials, including President Trump and Commerce Secretary Raimondo, have reiterated the necessity for South Korea to make this investment upfront, which has led to increased tensions in negotiations [1][2] - South Korea's National Security Office Chief, Kim Sung-han, stated that the country is unable to meet the $350 billion demand, emphasizing that this is not a negotiation tactic but a realistic limitation [2][3] Group 2 - The negotiations have reached a substantial deadlock, with South Korea rejecting the U.S. proposal to follow the Japanese model of investment, which would require a significant cash equity contribution [2] - Concerns have been raised about the potential impact on South Korea's foreign exchange reserves, which are currently around $410 billion, and the risk of financial instability if the U.S. demands are met [3] - Former South Korean Deputy Prime Minister Kim Dong-yeon warned against repeating the historical mistakes of Japan, referencing the Plaza Accord of 1985, which led to significant economic challenges for Japan [2][3]