Koo Yooncheol to Attend IMF Annual Meeting in Washington on the 15th
Follow-up to Kim Junggwan?Lutnick Talks, Spotlight on Koo Yooncheol?Scott Besant Meeting
Negotiations Continue Over $350 Billion U.S. Investment Package
As tariff negotiations surrounding the $350 billion (approximately 502 trillion won) U.S. investment package between South Korea and the United States remain in the coordination stage, attention is focused on whether there will be progress on key issues such as the signing of a Korea-U.S. currency swap, as Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-cheol is scheduled to meet with U.S. Secretary of the Treasury Scott Besant on the 15th.
President Lee Jae-myung and U.S. President Donald Trump are holding a summit at the White House in Washington DC on the 25th (local time). Photo by Yonhap News
According to the Ministry of Economy and Finance and trade authorities on the 12th, Deputy Prime Minister Koo will attend the G20 Finance Ministers’ Meeting and the International Monetary Fund (IMF) Annual Meeting in Washington, D.C., on the 15th. At this event, he is expected to hold a bilateral meeting with Secretary Besant to discuss financial issues such as the implementation of the U.S. investment package and measures to stabilize the foreign exchange market.
However, the schedule, format, and specific agenda of the meeting are still being coordinated. It has not yet been decided whether the Korea-U.S. finance ministers’ meeting will be held at a simple exchange level or take the form of substantive negotiations addressing core issues such as tariffs and currency matters.
Previously, at the end of July, the two countries reached a broad agreement through tariff negotiations: the United States would lower its reciprocal tariffs on Korean goods from 25% to 15%, while South Korea would provide a total U.S. investment package worth $350 billion. However, differences remain over specific issues such as the distribution of investment shares and profit allocation, preventing the agreement from progressing to a memorandum of understanding (MOU) signing.
The South Korean government, concerned about the potential impact of large-scale U.S. investments on the domestic foreign exchange market, has effectively made the signing of a Korea-U.S. currency swap a precondition for the negotiations.
In this regard, on the 4th, Minister of Trade, Industry and Energy Kim Junggwan held talks with U.S. Secretary of Commerce Howard Lutnick in New York and delivered a revised proposal. The revised proposal reportedly includes: ▲ the signing of an unlimited Korea-U.S. currency swap, ▲ a reasonable level of direct investment ratio, and ▲ a guarantee of the right to be involved in investment destinations based on the principle of 'commercial reasonableness.'
In an interview upon returning to Korea, Minister Kim stated, "During these negotiations, there was significant consensus on the sensitivity of the Korean foreign exchange market," adding, "Although the currency swap has not been confirmed, the U.S. side has recognized the importance of stabilizing the foreign exchange market."
Koo Yoonchul, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, is meeting with Scott Bessent, United States Secretary of the Treasury, on the 24th (local time) at the Republic of Korea Mission to the United Nations in New York, USA. Provided by the Ministry of Economy and Finance.
Within and outside the government, there is considerable attention on whether Deputy Prime Minister Koo’s visit to the U.S.-which follows the trade and industry negotiation line-will serve as a turning point for discussions on the currency swap.
An official from the Ministry of Economy and Finance said, "U.S. investment and foreign exchange market stability are interconnected issues, and we understand that the U.S. side has formed some consensus with Korea’s concerns," adding, "Even if a currency swap is not agreed upon, we expect to be presented with practical alternatives to mitigate foreign exchange market risks."
Deputy Prime Minister Koo also plans to meet Secretary Besant again at the APEC Finance Ministers’ Meeting in Songdo next week and during the APEC Summit at the end of this month. Accordingly, negotiations on the Korea-U.S. currency swap and U.S. investment are expected to continue in succession, with the APEC session serving as a critical juncture.
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