Seoul: The finance chiefs of South Korea and the United States have shared the understanding that excessive volatility of the Korean won against the U.S. dollar is not desirable, Seoul's finance ministry announced. This consensus was reached during a meeting between Finance Minister Koo Yun-cheol and U.S. Treasury Secretary Scott Bessent in Washington, as Koo attended the Group of 20 finance ministers and central bank governors meetings.

According to Yonhap News Agency, Koo and Bessent agreed to continue consultations on recent trends in the foreign exchange market. The Korean won has experienced increased volatility due to the U.S.-Israeli conflict with Iran, which has led to a rise in global oil prices, raising concerns about inflation and a potential economic slowdown.

Bessent expressed approval for South Korea's efforts to implement a bilateral trade deal, including the National Assembly's passage of a special bill in March on Seoul's commitment to invest US$350 billion in the U.S. The finance chiefs also explored ways to stabilize supply chains of key minerals and discussed the impact of the Middle East crisis on South Korea's economy.

In a separate meeting, Koo met with International Monetary Fund Managing Director Kristalina Georgieva, explaining South Korea's strategies to address the economic effects of the Iran war while maintaining fiscal soundness. Georgieva acknowledged South Korea's fiscal capacity and emphasized that Seoul's medium-term fiscal strategies would aid in stable fiscal management.