Seoul: A senior South Korean official announced that U.S. Treasury Secretary Scott Bessent's comments on the recent depreciation of the Korean won underline the U.S.'s acknowledgment of stable foreign exchange rates' importance in an investment commitment.

According to Yonhap News Agency, during a meeting in Washington with Finance Minister Koo Yun-cheol, Bessent remarked that the recent weakening of the won was not in line with South Korea's economic fundamentals. He emphasized that excessive volatility in the foreign exchange market is undesirable. The two finance ministers shared concerns over the steep depreciation of the won and agreed that a stable currency is crucial for bilateral trade and economic cooperation, stated Choi Ji-young, a senior official at the Ministry of Economy and Finance.

In October 2025, Seoul and Washington concluded the details of South Korea's $350 billion investment pledge, aimed at reducing U.S. tariffs. This includes South Korea's commitment to invest $200 billion in the U.S. through annual cash installments capped at $20 billion.

Bessent's comments were publicly shared through his social media and the U.S. treasury department, which some observers interpreted as verbal intervention amid fears that the won's weakness might impact South Korean companies' U.S. investment plans. When asked if Seoul requested such an intervention, Choi clarified that it was not appropriate to describe the situation in that manner.

Choi also dismissed any need to consider a currency swap, noting sufficient dollar supply. "A bilateral currency swap is considered during a foreign exchange crisis," Choi stated.

Addressing Bessent's comments, Bank of Korea Governor Rhee Chang-yong said they accurately reflected market conditions. He noted that the won's slide towards the 1,480 mark could not be justified by Korea's economic fundamentals, attributing most of the currency's weakness to a strong U.S. dollar, a weak Japanese yen, and geopolitical risks, with domestic factors also playing a role.

Citing concerns over the weak won, inflation, and financial stability, the Bank of Korea maintained its benchmark interest rate for a fifth consecutive meeting. The currency appreciated for the first time in 11 sessions, reaching 1,469.7 won on Thursday following the verbal intervention and rate decision.