US Treasury Secretary Scott Bessent Calls Korean Won Depreciation Out of Sync with Fundamentals
U.S. Treasury Secretary Scott Bessent told S. Korean Finance Minister Koo Yun-cheol that the won's recent depreciation is out of sync with strong economic fundamentals.
Your dollar might be getting stronger, but Washington says the Korean won's slide has gone too far. U.S. Treasury SecretaryScott Bessent signaled a potential verbal intervention, stating that the recent weakness of the South Korean currency doesn't match the country's actual economic strength.
US Treasury Secretary Scott Bessent Korean Won Depreciation Analysis
According to the Treasury Department, Bessent met with Seoul’s Finance Minister Koo Yun-cheol on Monday, January 12, 2026. The Secretary emphasized that 'excess volatility' in foreign exchange markets is 'undesirable,' especially as Seoul grows anxious about the won't decline against the greenback. The remarks are seen as a strategic move to reassure Korean investors committed to U.S. industrial projects.
The $350 Billion Investment Safeguard
The two nations discussed a massive trade deal where South Korea pledged to invest US$350 billion in the U.S. In return, the U.S. slashed reciprocal tariffs on Korean goods from 25% to 15%. To protect Korea's financial stability, the agreement includes a cap preventing Seoul from being required to fund more than US$20 billion in any single calendar year.
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