Seoul and Washington reached a key agreement on the foreign exchange risks deal worth $350 billion. Industry Minister Kim Jung-kwan provided updates after talks with US Commerce Secretary Howard Lutnick. Both sides worked to narrow differences and push forward stalled discussions on tariffs and investment structures. The agreement reflects growing cooperation between the two countries while addressing economic concerns. Officials emphasized careful management of the deal’s impact on financial markets.
The foreign exchange risks deal aims to reduce US tariffs from 25 percent to 15 percent in exchange for Korea’s major investments. Kim highlighted that both sides now better understand the potential impact on currency stability. They agreed to monitor market fluctuations carefully and coordinate on economic measures. Analysts see this as a step toward minimizing risks while boosting bilateral trade. Korea hopes the deal will strengthen investor confidence.
Seoul continues to shape the structure of the investment fund. It seeks to limit upfront equity commitments using loans and state-backed guarantees. Washington, however, prefers higher direct cash investments and wants control over project selection. This approach mirrors the $550 billion agreement the US reached with Japan. Both sides continue to negotiate on balancing investment flexibility with effective oversight.
Additionally, Seoul proposed a currency swap with Washington to stabilize the market during the foreign exchange risks deal implementation. Officials warned that the large-scale investment could trigger currency fluctuations if unaddressed. Kim confirmed that both parties discussed this seriously and agreed to monitor the impact. While an unlimited swap is uncertain, both governments recognized the sensitivity of the issue. They plan to revisit the topic in upcoming meetings.
Although US President Trump previously called Korea’s investment an “up-front” payment, Kim said this issue did not arise during recent discussions. The fund allocation and investment structure remain under review by both sides. Officials emphasized that the national interest will guide all negotiations. Additional talks are scheduled before major regional summits. The goal is to finalize details and maintain financial stability throughout the deal.
The foreign exchange risks deal represents a major step in strengthening Seoul’s economic ties with Washington while protecting monetary stability. Careful negotiation and transparency remain key priorities for both governments. The deal aims to balance trade benefits with economic security, ensuring both countries benefit. Analysts expect it to serve as a model for future large-scale investments. Korea and the US continue collaborating closely to achieve successful implementation.
