Overview
- The agreement divides $350 billion into $200 billion in phased cash payments capped at $20 billion per year and $150 billion for bilateral shipbuilding cooperation.
- Bank of Korea Governor Rhee Chang-yong welcomed the deal and said the central bank can supply roughly $15–20 billion annually without unsettling the foreign exchange market.
- Finance Minister Koo Yun-cheol argued the ceiling is more advantageous than a U.S. swap line, noting such a facility would carry an interest rate of about 4 percent.
- Presidential policy chief Kim Yong-beom said annual installments will be covered largely by reserve earnings with dollars sourced outside local markets, with analysts citing state-bank foreign bond issuance routed directly to the United States as a compatible option.
- Market commentators said clarity on the cap reduces uncertainty but warned financing specifics remain unclear and that reserve drawdowns or large outflows could still pressure the won and related risk metrics.