South Korea's Finance Minister Koo Yun-cheol and US Treasury Secretary Scott Bessent agreed in Washington that excessive volatility in the Korean won against the dollar is undesirable. Seoul's finance ministry said the two will continue consultations on foreign exchange market trends.
South Korea's Finance Minister Koo Yun-cheol met US Treasury Secretary Scott Bessent in Washington on Friday. During the meeting, as Koo attended G20 finance ministers and central bank governors' meetings, the two shared the view that excessive volatility in the Korean won is undesirable.
The won's heightened fluctuations stem from the US-Israeli war with Iran, which has driven up global oil prices and raised concerns over inflation and economic slowdown. They agreed to keep consulting on recent foreign exchange market trends.
Bessent welcomed South Korea's implementation of a bilateral trade deal, noting the National Assembly's March passage of a special bill on Seoul's US$350 billion investment pledge. The ministers also discussed stabilizing key mineral supply chains and the Middle East crisis's impact on the South Korean economy.
Separately, Koo met IMF Managing Director Kristalina Georgieva and outlined South Korea's efforts to address the Iran war's economic effects while maintaining fiscal soundness. Georgieva said South Korea has adequate fiscal room and its medium-term fiscal soundness measures will aid stable management.
