[2025 Audit] Koo Yoonchul: "Annual $20 Billion U.S. Investment Cap Is Far More Advantageous for National Interest Than Currency Swap"

Comprehensive Audit by the National Assembly's Strategy and Finance Committee
"Profit Distribution Will Be Adjusted in Case of Losses"

On October 30, Deputy Prime Minister and Minister of Economy and Finance Koo Yoonchul commented on the annual investment cap of 20 billion dollars in the United States, following the conclusion of the Korea-U.S. customs negotiations. He stated, "The cap was set in accordance with Korea's circumstances. In the early stages, it is unlikely that the annual investment will reach 20 billion dollars, and even if it does, the amount can be reduced if there are issues in the foreign exchange market."

During a comprehensive audit by the National Assembly's Strategy and Finance Committee, Assemblyman Yoon Youngseok of the People Power Party expressed concerns that "domestic investment may all flow out to the United States in the future." Deputy Prime Minister Koo responded, "That is absolutely not the case," and made the above remarks.

Regarding the decision by Korea and the United States to set the annual cash investment cap at 20 billion dollars without a currency swap, Deputy Prime Minister Koo explained, "If we were to implement a currency swap, we would have to pay an interest rate of about 4%. Setting an investment cap is much more advantageous for the national interest."

When Assemblyman Ahn Dogeol of the Democratic Party asked about the plan to raise 20 billion dollars annually, Deputy Prime Minister Koo replied, "Basically, the current foreign exchange reserve management yields about 15 billion dollars in returns. If that is insufficient, national policy institutions or overseas sources will also be considered for funding."

Koo Yoonchul, Deputy Prime Minister for Economy and Minister of Economy and Finance, is delivering the opening remarks at the Korea-Latin America Business Summit held at Conrad Hotel in Yeouido, Seoul on October 27, 2025. Photo by Jo Yongjun

Deputy Prime Minister Koo further stated, "However, since 20 billion dollars is the maximum, the actual investment will be made according to the actual amount disbursed, which may be less than 20 billion dollars. This was also taken into account."

Regarding the selection of investment projects, he said, "Projects must be selected in advance based on commercial viability. We will also appoint the project managers ourselves. We will approach the selection of projects with the utmost caution to avoid any principal loss, and if losses do occur, we have agreed to adjust the profit distribution accordingly."

In response to Assemblyman Cho Seungrae of the Democratic Party, who pointed out that "high tariffs remain on products such as steel, which will significantly impact domestic small and medium-sized enterprises," Deputy Prime Minister Koo said, "We have prepared measures for steel and aluminum, which are currently facing initial difficulties. We will devise comprehensive policies to ensure that small and medium-sized enterprises do not face hardships."

Meanwhile, when asked whether the government is considering raising property holding taxes, Deputy Prime Minister Koo avoided a direct answer, stating, "We have to comprehensively review the entire real estate tax system, so it is difficult to comment on a single item."