Seoul: U.S. Treasury Secretary Scott Bessent has stated that the recent depreciation of the Korean won does not align with South Korea's robust economic fundamentals. This assertion was made during his meeting with Seoul's Finance Minister Koo Yun-cheol earlier this week, as reported by the Treasury Department on Wednesday.

According to Yonhap News Agency, during the Monday meeting, Bessent emphasized that "excess volatility" in the foreign exchange market is "undesirable." This comes amid increasing concerns in Seoul regarding the Korean currency's depreciation against the U.S. dollar. Some observers have suggested that Bessent's remarks might serve as a "verbal intervention," given the fears that the won's weakness could impact Korean businesses' investment strategies in the U.S.

The Treasury Department release noted, "Their discussion addressed the recent depreciation of the Korean won, which the secretary noted was not in line with Korea's strong economic fundamentals." Bessent reiterated that Korea's robust economic performance, particularly in key industries that bolster America's economy, positions it as a vital partner for the United States in Asia.

The discussions also covered the complete and faithful implementation of a bilateral trade and investment agreement. As part of this agreement, South Korea has committed to investing US$350 billion in the U.S., with a reciprocal reduction in tariffs on Korean products from 25 percent to 15 percent by the U.S.

To address Seoul's concerns regarding the foreign exchange market, both countries agreed that South Korea would not be obligated to fund more than US$20 billion in any calendar year. Bessent expressed confidence that the implementation of this agreement would proceed smoothly, underscoring its potential to further strengthen the U.S.-South Korea economic partnership and invigorate America's industrial capabilities.

Additionally, Bessent and Koo participated in a U.S.-hosted meeting of finance ministers on Monday, discussing initiatives to secure supply chains for critical minerals in response to Washington's increased efforts to counter China's influence over essential resources.