Bessent: "Weak South Korean won inconsistent with fundamentals"

Financial News, New York — Correspondent Lee Byung-chulU.S. Treasury Secretary Scott Bessent expressed concern over the recent weakness of the South Korean won and heightened volatility in the foreign exchange market, saying it is "not in line with South Korea's strong economic fundamentals." Emphasizing that excessive exchange-rate fluctuations are undesirable, Secretary Bessent reaffirmed that South Korea, with its core industries that support the U.S. economy, is an "important partner in Asia."
The U.S. Department of the Treasury (Treasury Department) said on the 14th (local time) that Secretary Bessent met with Koo Yun-cheol, Deputy Prime Minister and Minister of Economy and Finance, to discuss the ministerial meeting on critical minerals and recent market developments. The two sides reviewed the economic situations in South Korea and the United States and discussed ways to further strengthen bilateral economic cooperation.
In particular, the recent depreciation of the South Korean won was raised during the talks. Secretary Bessent was reported to have conveyed the view that the currency's recent weakness is out of step with South Korea's economic fundamentals. He also stressed that "excess volatility" in the foreign exchange market is undesirable.
Secretary Bessent went on to note that South Korea is delivering solid performance in key industries that underpin the U.S. economy, such as semiconductors and batteries, reiterating that South Korea is a "core partner" in terms of supply chains to the United States and industrial competitiveness.
Meanwhile, the two sides also discussed implementation of President Donald Trump's Korea Strategic Trade and Investment Deal. Secretary Bessent stressed that the agreement must be implemented "fully and faithfully" and expressed the view that the implementation process will proceed smoothly.
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pride@fnnews.com Correspondent Lee Byung-chul Reporter