South Korea and the US discuss terms of tariff agreement

On September 24, the South Korean presidential office said that President Lee Jae Myung discussed with US Treasury Secretary Scott Bessent on the sidelines of the United Nations General Assembly, emphasizing that any tariff agreement between the two countries must be negotiated in a “commercially reasonable” manner and ensure the interests of both South Korea and the US.

The meeting focused on a $350 billion investment package the two leaders agreed on in July as part of a strategy to reduce tariffs on South Korean exports. Kim Yong-beom, chief of staff to President Lee, said Seoul wants further talks to be substantive and mutually beneficial.

While Lee and Bessent met, South Korean Finance Minister Koo Yun-cheol also had separate talks with US officials about the investment package and the proposed currency swap, Kim added, but the South Korean side declined to disclose details.

Some experts speculate that the currency swap proposal is a way for Seoul to reduce pressure if it has to invest large amounts of capital in the US, avoiding direct use of foreign exchange reserves.

Japan previously completed a trade deal with the US earlier this month, in which Tokyo pledged to invest $550 billion in US projects in exchange for tax cuts.

However, South Korea is concerned that a large inflow of capital into the US could devalue the won and reduce its foreign exchange reserves. In fact, in recent trading, the won broke through 1,400 won to the dollar, its lowest level since mid-May.

Seoul is now seeking an open-ended foreign currency swap agreement from Washington to help in the final negotiations. The US side is still reviewing the proposal.

Source: https://vtv.vn/han-quoc-va-my-ban-dieu-kien-thoa-thuan-thue-quan-100250925091953151.htm