SEOUL, January 15 (AJP) - In a rare departure from Washington’s long-held opposition to currency intervention, the U.S. Treasury secretary echoed Seoul’s concerns over the weak Korean won, lending verbal support to efforts to stabilize the currency.
U.S. Treasury Secretary Scott Bessent met with South Korea’s Deputy Prime Minister and Finance Minister Koo Yun-cheol on Monday (local time) to discuss market developments and preparations for the upcoming critical minerals ministerial meeting, according to a Treasury Department readout released Wednesday.
During the meeting, the two officials exchanged views on economic conditions in both countries and ways to deepen bilateral economic ties.
Bessent specifically addressed the recent depreciation of the Korean won, noting that the currency’s weakness does not align with South Korea’s underlying economic fundamentals.
He emphasized that excessive volatility in foreign-exchange markets is undesirable, while underscoring South Korea’s role as a critical U.S. partner in Asia — particularly given the strength of its key industries that support the American economy, the readout said.
The remarks mark an unusual shift in tone for Washington, which has traditionally cautioned Seoul against interventionist moves seen as supporting exports at the expense of the U.S. dollar and trade balance.
Bessent and Koo also discussed the full and faithful implementation of President Donald Trump’s Korea Strategic Trade and Investment Deal. Bessent said he expects the rollout to proceed smoothly and stressed that the agreement would further deepen bilateral economic cooperation and contribute to the revitalization of U.S. industrial competitiveness.
The comments appeared to have an immediate market impact. The dollar weakened sharply against the won overnight, sending the U.S. dollar down 13.50 won to 1,465.00 won.
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