Scott Bessent on Korean Won Depreciation: "Fundamentals Remain Strong"
U.S. Treasury Secretary Scott Bessent backs South Korea's economic fundamentals despite the won's depreciation. Analysis of the $350B investment and tariff deals.
Is the Won't slide justified by data? The U.S. Treasury's top official thinks not, offering a vote of confidence in South Korea's economy as currency markets face turbulent times.
U.S. Treasury Secretary Scott Bessent remarked that the recent depreciation of the Korean won doesn't align with the country's "strong" economic fundamentals. According to the Treasury Department on January 14, 2026, Bessent met with Seoul's Finance Minister Koo Yun-cheol to address growing anxieties over the currency's slide against the dollar.
Addressing the Scott Bessent Korean Won Depreciation Concerns
Bessent emphasized that "excess volatility" in foreign exchange markets is "undesirable." He reaffirmed that South Korea’s economic performance, particularly in sectors that bolster the U.S. economy, makes it a "critical partner" in Asia. This verbal intervention serves to stabilize market sentiment, suggesting that the U.S. views the current won weakness as a temporary deviation rather than a structural failure.
$350 Billion Investment and Tariff Reductions
The discussion also centered on a massive bilateral deal where South Korea pledged to invest $350 billion in the United States. In return, the U.S. is lowering reciprocal tariffs on Korean products from 25% down to 15%. Bessent expressed his desire for a smooth implementation, noting it would revitalize America's industrial strength while deepening the economic alliance.
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