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National Security Advisor Wi Sung-rak delivers a briefing at the presidential office in Yongsan, Seoul, on October 15 regarding the government’s response to recent kidnapping and unlawful confinement cases involving Korean nationals in Cambodia. (Photo: Yonhap News) |
[Alpha Biz= Kim Jisun] SEOUL, Oct. 16 — South Korea’s National Security Advisor Wi Sung-rak said Tuesday that there has been “no progress” in discussions with the United States over a proposed unlimited currency swap agreement, which Seoul has sought as part of efforts to stabilize the foreign exchange market during ongoing Korea-U.S. tariff negotiations.
Speaking at a press briefing at the presidential office in Yongsan, Seoul, Wi said,
“We proposed an unlimited currency swap to the U.S. Treasury, but there has been no progress so far.”
A currency swap allows two countries to exchange currencies at a predetermined rate and later reverse the transaction under the same terms. The South Korean government has reportedly suggested that if it invests $350 billion — equivalent to about 85% of its foreign reserves — in the United States as part of the investment conditions discussed in the tariff talks, it should be accompanied by a guaranteed unlimited swap facility to mitigate potential volatility in the won-dollar exchange rate.
Wi added,
“There has been no progress on a U.S. Treasury-based swap arrangement, and we are not attaching much significance or expectation to it. We have clarified the scope of what we can do on our side, and discussions with the U.S. are ongoing.”
When asked whether a limited swap was under discussion, Wi responded,
“There is no discussion with the U.S. Treasury — whether for a limited or unlimited swap. There has been no progress.”
However, differing signals emerged from Washington. Finance Minister and Deputy Prime Minister Koo Yoon-cheol, who arrived in Washington on October 15 (local time), said,
“It appears the U.S. is open to our proposal,”
when asked whether Washington was considering Seoul’s request for a financial safety net to offset large-scale dollar outflows from Korean investments in the U.S. His remarks were interpreted as a sign that the tariff negotiations might be nearing their final stage, possibly accompanied by a swap agreement.
U.S. Treasury Secretary Scott Besant also commented during a press briefing on the same day, when asked whether the U.S. would consider granting an unlimited swap line to South Korea:
“If I were the Fed Chair, I would have a swap line with Korea as well — just as we do with Singapore.”
The reference was notable because the U.S.-Singapore swap line is capped at $60 billion, suggesting that any potential arrangement with Korea might also involve a limited, rather than unlimited, facility.
Wi was also asked whether a breakthrough might come during the U.S. visit of Senior Secretary Kim Yong-beom, who departed earlier in the day. He said,
“The two sides have reached a preliminary understanding, but it’s uncertain how it will develop. It’s good to remain hopeful and have expectations. Even if a concrete deal is not reached, we may at least establish a broad framework.”
Regarding the possibility of progress during the upcoming APEC Summit in Gyeongju later this month, Wi said,
“The APEC meeting provides a major opportunity, and since both leaders will meet, it could serve as momentum for progress. Both sides have the will to use that occasion to move things forward.”
On a separate issue, Wi stated there were no confirmed indications of a forthcoming U.S.-North Korea summit, despite speculation raised by Unification Minister Chung Dong-young, who told MBC’s “Questions with Son Suk-hee” program on October 15 that such a meeting could take place at the Panmunjom border area if former President Donald Trump decides to proceed.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
