Core Viewpoint - The U.S. Treasury has placed South Korea back on the "currency manipulation watch list" due to its significant trade surpluses, indicating a political maneuver rather than a purely technical assessment of currency practices [1][3][4]. Group 1: Economic Data and Trends - South Korea's trade surplus with the U.S. surged from $14 billion in 2024 to $55 billion, while its current account surplus increased from 1.8% to 5.3% of GDP [3]. - The U.S. Treasury's criteria for "currency manipulation" lack international consensus and are unilaterally defined, leading to inconsistent application based on political contexts [3][4]. Group 2: Political Implications - The re-inclusion of South Korea on the watch list serves as a warning signal in the context of U.S.-Korea trade and industrial competition, aiming to pressure South Korea into concessions regarding its industrial policies and exports to the U.S. [4][6]. - The U.S. strategy reflects a broader trend of exerting pressure on allied nations in the Indo-Pacific region, highlighting growing tensions in trade, finance, and technology sectors despite strong military ties [6][8]. Group 3: Global Financial System Impact - The U.S. Treasury's actions undermine the multilateral mechanisms for currency monitoring established by the International Monetary Fund (IMF), contributing to the politicization of the international financial system [6][8]. - The use of the "currency manipulation watch list" as a policy tool may lead to increased uncertainty in global finance, affecting investor confidence and the stability of smaller economies [8].