Wi Sung-lac, the presidential Office of National Security national security adviser, said on the 16th that there has been "no progress on a currency swap, whether unlimited or limited, between the U.S. Treasury and us" regarding the conclusion of a "Korea-U.S. unlimited currency swap" that our government proposed as a "foreign exchange market safety device" in follow-up talks after tariff negotiations with the United States. This comes as the two countries are in last-minute coordination over differing views on how to structure a $350 billion investment, and amid talk of pursuing an agreement between the Treasury and the Bank of Korea instead of the Central Bank (Fed; Federal Reserve), which is the principal party to a currency swap.
At a press briefing at the Yongsan presidential office that day, Wi said, in response to a question about the Korea-U.S. tariff negotiations, "I am in the 'second line' position on tariff negotiations," adding, "I have proposed an unlimited (currency swap) to the Treasury." He said, "A currency swap had been raised before (by our side), and the United States was holding on to it," adding, "However, there has been no particular progress." He also said, "Even if an unlimited currency swap is activated by the U.S. side, it is a necessary condition (for concluding the negotiations), and another sufficient condition is needed," adding, "We are not placing great significance on or expecting much from that issue."
Regarding the tariff negotiations, Wi said, "The U.S. side has stated its position, and we have clarified the scope and limits of what we can do," adding, "We are exchanging views with the United States." However, he drew a line, saying, "It is cautious to predict or assess (the currency swap negotiation matter) when I am not in real-time communication with the negotiating team. The situation is variable."
This differs somewhat from remarks by our government's negotiating team. Earlier, Kim Yong-beom, the Presidential Chief of Staff for Policy at the presidential office, and Minister Kim Jung-kwan of the Ministry of Trade, Industry and Energy told reporters before departing for Washington, D.C., on the morning of the 16th for follow-up consultations on tariff negotiations, "In several areas related to the foreign exchange market, a significant portion of misunderstandings, gaps, and differences in understanding with the U.S. side has narrowed." Koo Yun-cheol, deputy prime minister and Minister of Economy and Finance, who is visiting the United States to attend the IMF and World Bank annual meetings, also said on the 15th (local time), when entering Dulles Airport in response to a question about a currency swap, "The United States understands our country's foreign exchange market a lot. They will probably accept our proposal."