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Bessent's comments show importance of FX stability in US-South Korea cooperation, Seoul says
Yahoo Finance· 2026-01-15 07:21
Group 1 - U.S. Treasury Secretary Scott Bessent emphasized the significance of foreign exchange stability for economic cooperation between South Korea and the U.S. [1][2] - The recent depreciation of the Korean won was discussed, with Bessent noting it does not align with South Korea's economic fundamentals [2] - South Korean Deputy Finance Minister Choi Ji-young highlighted that currency stability is crucial for the $350 billion U.S. investment pledged by South Korea [1][3] Group 2 - Finance authorities from both countries will closely communicate and cooperate on foreign exchange market stability, with prior agreements to delay investments during market instability [3] - The deal allows South Korea to request adjustments in the investment amount and timing if it risks causing volatility in the foreign exchange market [4] - The Bank of Korea indicated an end to its easing cycle due to concerns over the weak won, while measures to control foreign exchange volatility were promised [4][5] Group 3 - New macro-prudential policies are being considered to address discrepancies between foreign exchange conditions and macroeconomic fundamentals [5] - A bill to establish a special fund for financing the $350 billion investment package was introduced by South Korea's ruling Democratic Party but has not yet been passed [5]
South Korea seeks incentives for long-term stock investment, FX stability
Yahoo Finance· 2025-11-19 07:12
Group 1 - South Korea plans to introduce incentives for long-term stock investors, particularly targeting small investors who remain in capital markets for extended periods or invest in specific stocks long-term [1] - The finance minister emphasized the government's commitment to foreign exchange stability, consulting with market participants to mitigate excessive uncertainty and instability in exchange rates [2] - The government is utilizing taxpayer funds for a $350 billion investment package in the U.S. as part of a trade deal, which is expected to lower tariffs and benefit companies [3] Group 2 - The finance minister has engaged with major exporters regarding the repatriation of U.S. dollars earned abroad, indicating a focus on foreign exchange dynamics [2] - There is a growing demand for overseas investment from the national pension fund, highlighting a shift in investment strategies [2] - Companies are encouraged to recognize the government's efforts and taxpayer contributions towards enhancing their competitive position through international investments [3]