The United States and South Korea issued a joint statement pledging not to manipulate exchange rates for competitive advantage, aligning with commitments under the IMF framework. The agreement mirrors one signed with Japan last month and underscores that FX interventions should be reserved solely for addressing excessive volatility, whether from sharp depreciation or appreciation.
South Korea agreed to share details of its FX operations with Washington on a monthly basis, though public disclosures will continue quarterly with a three-month delay. Seoul will also provide more transparency on its foreign reserves and forward positions. However, the statement stopped short of granting Seoul’s request for a bilateral currency swap line and did not specifically address the role of the country’s powerful National Pension Service, which U.S. officials flagged earlier this year as a potential vehicle for intervention.
The joint statement comes as negotiations over a July trade framework — cutting U.S. tariffs on South Korean imports in exchange for a $350 billion investment package — have stalled over currency concerns. The won has fallen about 3% in the second half of 2025, trading around the 1,400 per dollar level, underperforming most emerging Asian currencies.
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