Overview

• A joint statement commits both countries to avoid currency manipulation and to reserve interventions for excessive volatility rather than competitive advantage.
• South Korea will share monthly details of FX interventions, reserves and forward positions with the U.S., maintain public intervention reports quarterly with a three‑month lag, and disclose reserve currency composition annually.
• The principles echo a recent U.S.–Japan understanding and specify that government investment vehicles invest for risk‑adjusted returns and diversification rather than to influence exchange rates.
• Seoul’s request for a bilateral won‑dollar swap was not included, with Korean officials cautioning a swap is unlikely and experts noting the won’s non‑key‑currency status.
• Talks to formalize July’s framework cutting certain U.S. tariffs to 15% in exchange for $350 billion in Korean investment remain stalled over FX risks, as the won trades near 1,400 per dollar and leaders warn against an upfront cash approach.