U.S. Treasury Secretary Scott Bessent stated that the recent depreciation of the Korean won does not align with South Korea's strong economic fundamentals. During a meeting this week with Seoul's Finance Minister Koo Yun-cheol, he emphasized that excess volatility in the foreign exchange market is undesirable. The two sides discussed the full implementation of a bilateral trade and investment agreement.
In Washington, U.S. Treasury Secretary Scott Bessent met with South Korea's Finance Minister Koo Yun-cheol to discuss the recent depreciation of the Korean won. Bessent noted that "the recent depreciation of the Korean won was not in line with Korea's strong economic fundamentals," and emphasized that excess volatility in the foreign exchange market is undesirable. He reaffirmed Korea's strong economic performance, particularly in key industries supporting the U.S. economy, making it a critical partner in Asia.
The two sides discussed the "full" and "faithful" implementation of a bilateral trade and investment agreement. Under the deal, South Korea pledged to invest $350 billion in the United States, in return for the U.S. lowering "reciprocal" tariffs on Korean products from 25 percent to 15 percent. Reflecting Seoul's concerns about impacts on the foreign exchange market, the agreement caps annual investments at $20 billion. Bessent expressed that smooth implementation would deepen the U.S.-South Korea economic partnership and promote the revitalization of America's industrial might.
On Monday, Bessent and Koo attended a U.S.-hosted meeting of finance ministers discussing efforts to secure supply chains for critical minerals, amid Washington's push to counter China's dominance over vital resources. Some observers view Bessent's remarks as a potential "verbal intervention," given concerns that the won's weakness could affect Korean businesses' U.S. investment plans.
