Minister Kim Jung-kwan: "If $20 Billion Investment in the U.S. Affects the Foreign Exchange Market, It Will Be Reduced"

[Financial News] Minister Kim Jung-kwan of the Ministry of Trade, Industry and Energy addressed the phrase in the United States–Korea Tariff Negotiations fact sheet stating, "If circumstances arise that affect the foreign exchange market, the United States will also cooperate," explaining, "If the timing or scale of the $20 billion investment impacts the foreign exchange market, it means the investment will be reduced."
On the 17th, Minister Kim made these remarks during an appearance on YTN News Square 10. He noted, "What I signed was the Memorandum of Understanding on Strategic Investment between Korea and the United States (MOU), which is included in the fact sheet between the presidents. This demonstrates how much both leaders value the stability of Korea's foreign exchange market." He emphasized that such content is not included in the U.S.-Japan Tariff Negotiations.
Minister Kim explained, "Originally, the entire $200 billion was to be invested, but we insisted on setting an annual limit." He added, "We established 'an annual $20 billion cap' as a deal-breaker, meaning that if this threshold is not maintained, the negotiations would collapse."
He stated, "With a simple calculation at a 5% yield, $20 billion can be covered solely by the returns on foreign reserves, without government intervention in the foreign exchange market." He continued, "The amount was determined in consultation with foreign exchange authorities, and if the deal had fallen through, the shock would have been much greater."
Regarding the $200 billion Korea is investing in the United States, Minister Kim said, "Howard Lutnick, the U.S. Secretary of Commerce, selects the investment committee and recommends it to President Donald Trump, who makes the final decision." He added, "Some say President Trump is handling everything himself, but given his busy schedule, it's impossible for him to oversee every detail."
On the same day, Minister Kim also appeared on CBS Kim Hyun-jung's News Show, where he assessed the fact sheet as "barely passing" and commented, "While I felt relieved when signing the Korea-U.S. MOU, I now feel a sense of disappointment."
Minister Kim added, "The negotiations started on an uneven playing field, and I was reminded of the current level of our national power. There are aspects of the agreement that are unsatisfactory, so I can't say I'm completely content."
Regarding calls for parliamentary ratification of the Korea-U.S. negotiations, he stated, "Legally, it is not binding, so ratification is not actually required." He continued, "There are many tasks ahead, such as project selection. If ratification were required, it would be like a boxer entering the ring with hands and feet tied, while the opponent is free to move."
Meanwhile, at the Trade Promotion Committee held that day, Yeo Han-koo, Trade Minister, stated, "It is important to thoroughly implement follow-up measures in the non-tariff sector to stably manage the Korea-U.S. trade environment." He added, "As the chief representative of the United States–Korea Free Trade Agreement (KORUS FTA) Joint Committee, I ask for close cooperation among related ministries to smoothly conclude non-tariff negotiations."
The meeting was convened with the participation of relevant ministries to discuss the implementation of follow-up measures for trade agreements. The joint briefing materials included topics such as automobiles, agricultural products, digital trade, competition, intellectual property rights, labor, environment, non-tariff barriers, and economic security cooperation. The Trade Negotiation Headquarters plans to hold the United States–Korea Free Trade Agreement Joint Committee with the Office of the United States Trade Representative (USTR) in December to discuss concrete implementation plans.

[email protected] Park Ji-young Reporter