US Treasury Puts South Korea Back on Currency Watch List, Citing Pressure on Won

The Trump administration redesignated South Korea as a currency watch list country on July 23.

In its semiannual report to Congress on the macroeconomic and foreign-exchange policies of major trading partners, the US Treasury Department placed 10 economies on its currency watch list: South Korea, China, Japan, Taiwan, Singapore, Vietnam, Germany, Ireland, Switzerland and Thailand. The same 10 economies were included in the January report.

The report said the won has remained under depreciation pressure despite South Korea's large current-account surplus.

It also said South Korean authorities are making progress in easing restrictions on foreign investors' participation in the domestic foreign-exchange market. The Treasury said that should help market liquidity and price discovery over the medium term.

Park Su-rim, Hankyung.com reporter paksr365@hankyung.com