Key Points

Upon arrival from his trip to the U.S., Koo told reporters Saturday that South Korea and the U.S. have completed their FX negotiations and plan to announce the outcome soon, reports Yonhap news agency.

His remarks spawned speculation that there may be some progress in Seoul's request for opening a currency swap line with the U.S., a proposal aimed at cushioning the potential impact on the FX market by South Korea's massive investment package in the U.S.

However, presidential spokesperson Kang Yu-jung said the FX negotiations referred to by Koo were not the same talks that centered on the tariff issue.

"The U.S. 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," Kang said.

In June, the U.S. kept South Korea on its list of countries that should have their FX policies monitored, citing its trade and current account surplus with the U.S. Although South Korea is not designated as a currency manipulator, it has been kept on the monitoring list since November 2024.

In regard to the ongoing tariff talks with the U.S., Kang said the government is proceeding with the negotiations while prioritizing the promotion of national interests.

Trade negotiations between South Korea and the U.S. have shown little headway in resolving the details of Seoul's US$350 billion investment pledge linked to lowering U.S. tariffs on Korean products from 25 percent to 15 percent.

- IANS