Koo Yun-cheol, deputy prime minister and Minister of the Ministry of Economy and Finance who is conducting Korea-U.S. tariff talks, said regarding the $350 billion (about 501 trillion won) investment in the United States that the focus is on the investment structure rather than a currency swap.
On the 22nd, in an interview with Bloomberg TV in the United States that was made public, he said, "U.S. Treasury Secretary Scott Bessent understands well the difficulties in Korea's foreign exchange market and is discussing internally how to respond to the situation."
He explained that the U.S. government, including Minister Bessent, recognizes the possibility that Korea's foreign exchange market could be shocked if the $350 billion must be invested upfront.
The won-dollar exchange rate against the dollar has already surpassed the 1,400-won level due to the fallout from uncertainty in the tariff negotiations. The weekly transaction closing price that day rose to 1,429.8 won.
Koo stressed that Korea is focusing on negotiating a balanced composition of investment that mixes direct investment, loans, and guarantees.
He went on to stress that whether a financial safety device related to the U.S. demand for a full upfront investment—namely, a currency swap—is needed depends on this structure.
He said, "Whether a currency swap is needed, and to what extent, depends entirely on how the investment is structured. It may not be needed at all, or it may be concluded on a small scale."
Koo said he actively emphasized to U.S. President Donald Trump and others the disadvantage that Korean-made cars face a higher 25% tariff compared with Japanese-made cars (15%).
He said, "I believe the recent weakness of the won reflects the uncertainty that the negotiations have not been concluded. If the tariff issue is resolved, the uncertainty will disappear."
Koo said resources are being concentrated on artificial intelligence (AI), digital transformation, and deep tech industries. He emphasized that structural problems such as aging, low birthrates, and rising government debt will be addressed.
Koo explained that the projection that the ratio of government debt to gross domestic product (GDP), which is 49.1% this year, will rise to 58% in 2029 reflects a worst-case scenario.
He said, "We are not simply increasing expenditure; we are investing by focusing on transformative technologies. Even if only some succeed, the debt ratio could decline."