The Ministry of Strategy and Finance said on the 19th that Korea and the United States share the view that excessive volatility in the won is undesirable.
Koo Yun-cheol, Deputy Prime Minister for the Economy and Minister of Strategy and Finance, met U.S. Treasury Secretary Scott Bessent at the Treasury Department in Washington, D.C., on the 17th (local time) to discuss pending issues. At the meeting, the two finance ministers said excessive volatility in the won is undesirable and agreed to continue consultations on foreign exchange market trends.
On a weekly transaction closing basis (9 a.m.–3:30 p.m.), the won-dollar exchange rate broke through 1,500 won on the 26th of last month. As this trend continued, the won-dollar exchange rate stayed above the 1,500-won level through the 7th of this month. Recently it fell below 1,500 won, but remains high around the 1,480-won level.
On the day, Deputy Prime Minister Koo explained the progress on carrying out $350 billion in investment in the United States, including the enactment of a special act on investment in the United States following an agreement between the ruling and opposition parties. In response, Secretary Bessent expressed a welcome.
The two finance ministers also exchanged views on the impact of the Middle East war on Korea's economy and on measures to stabilize supply chains, including for critical minerals. Deputy Prime Minister Koo said the Korean government is responding by formulating a supplementary budget of 26.2 trillion won.
Koo went on to say that he supports discussions on resolving global growth and imbalance issues, which are key agenda items for the United States as this year's G20 chair. He added that investing in human resources through artificial intelligence (AI) education is important.