U.S. Confirms S. Korea Not Designated Currency Manipulator

2025-09-28 07:58:29

(MENAFN) The South Korean presidential office confirmed Sunday that the United States has not classified South Korea as a currency manipulator, according to a report by media in Seoul.

Officials revealed that Seoul and Washington have engaged in discussions about the possibility of South Korea being designated a currency manipulator. This statement follows comments made by Finance Minister Koo Yun-cheol on the conclusion of foreign exchange (FX) talks between the two countries.

Returning from the US on Saturday, Koo told reporters, "FX negotiations with the US had been completed and the outcome would be announced soon," prompting speculation that progress had been made toward a currency swap agreement. This swap line aims to mitigate potential disruptions in the FX market due to South Korea’s significant investment in the United States.

However, presidential spokesperson Kang Yu-jung clarified, "The US has determined whether or not to put some other countries on its list of currency manipulators. Regarding this, it's believed that it has not judged South Korea to be a currency manipulator." She emphasized that the FX discussions referenced by Koo are separate from ongoing tariff negotiations.

The US continues to monitor South Korea due to its trade and current account surpluses but has yet to officially label it a currency manipulator. South Korea has remained on the US monitoring list since November 2024, with its status reaffirmed in June.

On the tariff front, Kang noted that talks are ongoing, with national interests at the forefront. In July, Seoul and Washington tentatively agreed to reduce US tariffs on South Korean imports from 25% to 15%, contingent on Seoul’s pledge to invest $350 billion in the US. However, disagreements over the structure of this investment fund have stalled final approval. Without resolution, the higher 25% tariff on South Korean goods could be reinstated.

The unfolding negotiations between two key allies underscore the delicate balance of economic cooperation amid rising global trade tensions.

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