09.09.202506:10:34UTC+00FX Concerns Stall South Korea-U.S. Trade Deal Finalization

South Korea's efforts to solidify a trade agreement with the United States have encountered delays due to concerns about the impact of its USD 350 billion investment commitment in the U.S. on foreign exchange markets, according to a senior presidential official. In contrast, Japan recently secured its USD 550 billion investment package following an executive order from President Donald Trump. South Korea, however, has not yet reached a formal agreement based on its July negotiations. Presidential Policy Secretary Kim Yong-beom emphasized the necessity of addressing the implications on the won-dollar exchange rate as a priority. He highlighted South Korea's relatively weaker position compared to Japan, whose yen enjoys international currency status, bolstered by a currency swap program and foreign reserves that are three times the size of South Korea's. Kim stated that South Korea could not agree to terms akin to those in Japan's agreement.