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Finance chief confirms finalized currency agreement with U.S.

Published: 28 Sep. 2025, 14:33 Updated: 28 Sep. 2025, 16:33

Koo Yun-cheol, Minister of Finance and Economy talks at a meeting held at the Government Complex in Jongno District, central Seoul, on Sept. 15. [YONHAP]

A currency agreement with the United States has been finalized and will be announced soon, Deputy Prime Minister for Economic Affairs Koo Yun-cheol said Saturday.

“President Lee Jae Myung met with Treasury Secretary Scott Bessent first, and I was present at the meeting,” said Koo, speaking to reporters at Incheon International Airport upon returning from a trip to the United States.

“During the meeting, President Lee raised issues related to trade negotiations and the currency swap, and I followed up with a bilateral discussion with Secretary Bessent, where I thoroughly explained Korea’s foreign exchange situation and the need for a swap deal.”

Koo did not elaborate on the specifics of the agreement.

“I explained in detail Korea’s foreign exchange conditions and stressed the necessity of a currency swap, particularly in scenarios such as needing to make a one-time investment of $350 billion, similar to Japan,” Koo said. “Secretary Bessent is an expert who fully understands our forex market. He said he would return to Washington, discuss it internally, and get back to us.”

“Secretary Bessent has a full understanding of our situation, and I also conveyed some additional considerations,” said Koo. When asked whether the deal might fall through, Koo said, “I believe those will be taken into account.”

United States Secretary of the Treasury Scott Bessent participates in a Cabinet Meeting in the Cabinet Room of the White House in Washington on Aug. 26. [EPA/YONHAP]

Regarding media reports that the United States demanded Korea increase its investment commitment, Koo dismissed the claim, saying, “I have not heard of any such request.”

However, this deal is not related to a currency swap, but rather to the “monetary policy discussions” initiated in April under Koo’s predecessor, Choi Sang-mok. The agreement is expected to include a general statement affirming that exchange rates should be determined by the market.

Japan, which previously reached a similar agreement with the United States, also adopted such language, emphasizing that exchange rates should be market-driven on Sept. 12 in a joint statement with the United States.

Meanwhile, National Security Adviser Wi Sung-lac said in an interview with Korean media outlet Channel A on Saturday that the U.S. demand for a cash investment is “objectively and realistically beyond our capacity.”

“That statement wasn’t made as a negotiation tactic,” Wi added. “It’s a reality anyone in Korea can acknowledge,” stressing, “Regardless of political affiliation, no one can meet such a demand, and we are now working on alternatives.”

BY CHO MUN-GYU [[email protected]]