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| ▲ This file photo, released by Reuters, shows U.S. Treasury Secretary Scott Bessent standing at the White House in Washington on Dec. 13, 2025. (Yonhap) |
(LEAD) Bessent-Korean won
(LEAD) Bessent says recent won depreciation not in line with S. Korea's strong economic fundamentals
(ATTN: RECASTS headline; ADDS more details in paras 5, 8)
By Song Sang-ho
WASHINGTON, Jan. 14 (Yonhap) -- U.S. Treasury Secretary Scott Bessent has said the recent depreciation of the Korean won was not in line with the Asian country's "strong" economic fundamentals, as he met with Seoul's Finance Minister Koo Yun-cheol this week, the Treasury Department said Wednesday.
During the meeting with Koo on Monday, the secretary also underscored that "excess volatility" in the foreign exchange market is "undesirable," it said, amid growing concerns in Seoul about the Korean currency having fallen against the U.S. dollar.
"Their discussion addressed the recent depreciation of the Korean won, which the secretary noted was not in line with Korea's strong economic fundamentals," the department said in a release.
"Secretary Bessent emphasized that excess volatility in the foreign exchange market is undesirable, and reaffirmed that Korea's strong economic performance, especially in key industries that support America's economy, make it a critical partner for the United States in Asia," it added.
Some observers said that the release of Bessent's remarks on the Korean currency might amount to a "verbal intervention" as concerns have emerged that the won's weakness could affect Korean businesses' investment plans in the U.S.
The two sides also discussed the "full" and "faithful" implementation of a bilateral trade and investment agreement, the department said.
Under the agreement, South Korea has pledged to invest US$350 billion in the United States, among other commitments, in return for the U.S. lowering of "reciprocal" tariffs on Korean products to 15 percent from 25 percent.
Reflecting Seoul's concerns about the impact of its pledged investment on the foreign exchange market, the two countries have agreed that South Korea will not be required to fund more than an aggregate of US$20 billion in any calendar year.
"The secretary expressed his view that its implementation should go smoothly," the department said, referring to the bilateral agreement.
"Secretary Bessent highlighted that this deal will further 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 that discussed efforts to secure supply chains for critical minerals amid Washington's stepped-up efforts to counter China's growing heft over vital resources.
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