Seoul: U.S. Treasury Secretary Scott Bessent has stated that the recent depreciation of the Korean won does not reflect South Korea's economic fundamentals. This statement was made during a meeting with South Korea's Finance Minister Koo Yun-cheol, according to the Treasury Department.
According to Yonhap News Agency, the meeting focused on concerns about the Korean currency's decline against the U.S. dollar. Bessent emphasized that "excess volatility" in the foreign exchange market is undesirable and reiterated that South Korea's strong economic performance, particularly in industries that benefit the U.S. economy, makes it a vital partner.
The discussions also included the implementation of a bilateral trade and investment deal, under which South Korea has committed to investing US$350 billion in the U.S. In exchange, the U.S. agreed to reduce tariffs on Korean products from 25 percent to 15 percent. The Treasury Department noted that Secretary Bessent expects the smooth implementation of this agreement, which aims to enhance the U.S.-South Korea economic partnership and boost America's industrial sector.
Additionally, Bessent and Koo participated in a U.S.-hosted meeting of finance ministers that addressed securing supply chains for critical minerals. This comes amid U.S. efforts to counter China's influence over essential resources.