Big Money Talks: South Korea and the US

Key Details:

• South Korea and the US are close to finalizing a foreign exchange agreement.
• South Korea's Finance Minister Koo Yun-cheol shared the update with reporters.
• No details provided about the agreement.

What the Agreement Isn't

• Not a currency swap (Source: Yonhap news agency, unnamed finance ministry official).
• Not directly tied to President Trump's tariffs on South Korean products.

Background Context

• South Korea has promised to invest $350 billion in the US.
• Requires a foreign exchange swap to facilitate this investment.
• South Korean President Lee Jae Myung discussed this with US Treasury Secretary Scott Bessent in New York.
• Bessent agreed to discuss it with other US officials.

The Catch

• South Korea cannot pay the $350 billion all at once (as suggested by Trump).
• President Lee warned of potential economic crisis similar to the 1997 meltdown if protections are not secured.
• Commerce Secretary Howard Lutnick has discussed raising the $350 billion investment.
• Finance Minister Koo Yun-cheol stated he has not heard about these discussions.