Deputy Prime Minister Koo Yoon-chul likely to discuss currency swap with U.S. Treasury in New York on the 24th

For US$350 billion investment in the U.S.

Likely to explain the need for a Korea-U.S. currency swap

It was reported that Koo Yoon-chul, Deputy Prime Minister and Minister of Economy and Finance, will meet U.S. Treasury Secretary Scott Bessent in Manhattan, New York, on the 24th (local time). He is expected to discuss, including Korea-U.S. tariff negotiations, methods of executing South Korea's US$350 billion investment in the U.S. and whether to implement a Korea-U.S. currency swap for that purpose.

A senior government official said on the 23rd in Manhattan, where the UN General Assembly is being held, "A meeting with Secretary Bessent (and Deputy Prime Minister Koo) is scheduled for tomorrow." Deputy Prime Minister Koo departed for the United States on the evening of the 23rd Korea time for a 3-night, 5-day trip. It was to prepare economic-related schedules for President Lee Jae-myung, who has been visiting New York, United States, since the 22nd to attend the 80th United Nations General Assembly.

President Lee is scheduled to meet financial figures from New York's Wall Street and Korean businesspeople to hold a Korea economic briefing (IR) investment summit, and Deputy Prime Minister Koo will also attend the event.

Earlier, President Lee, in an interview with Reuters regarding differences between South Korea and the United States over the scheduled US$350 billion investment in the U.S. as part of Korea-U.S. tariff negotiations, said, "If we accept the U.S. demands, we could face a financial crisis."

According to Reuters, the president said in an interview conducted at the presidential office that they could not document the trade agreement between Korea and the United States because of differences over how to handle the investment. The president said in particular, "If we invest the entire US$350 billion in cash as the U.S. demands without a currency swap, Korea would face a situation similar to the 1997 financial crisis."

Deputy Prime Minister Koo is expected to meet with Secretary Bessent on the 24th to explain such conditions in Korea's foreign exchange market and to explain the shock the Korean economy would receive if US$350 billion were invested at once. He is also expected to explain that a Korea-U.S. currency swap must necessarily accompany sustainable investment in the United States.

New York=Park Shin-young, correspondent nyusos@hankyung.com