South Korea, U.S. Finalize Foreign Exchange Deal for $350B

Seoul, South Korea — South Korea and the United States have finalized a foreign exchange agreement, Finance Minister Koo Yun-cheol said Saturday. He confirmed the deal at Incheon International Airport but did not provide further details.

A finance ministry official told Yonhap News Agency that the agreement is separate from ongoing currency swap discussions. South Korea has requested a swap with the U.S. Federal Reserve to ensure sufficient dollar liquidity while fulfilling its $350 billion investment pledge linked to tariff negotiations.

President Lee Jae Myung met U.S. Treasury Secretary Scott Bessent in New York last Wednesday. Lee said South Korea requires a swap line to carry out the investment safely. Koo said Bessent promised to discuss the request with other officials in Washington before responding.

National Security Adviser Wi Sung-lac stated that South Korea cannot provide the full $350 billion upfront, as former President Donald Trump suggested. President Lee has warned that paying the entire sum immediately without financial safeguards could strain the economy and risk a crisis similar to the 1997 Asian financial collapse.

Koo said he was not aware of a Wall Street Journal report claiming U.S. Commerce Secretary Howard Lutnick had discussed increasing the $350 billion figure.

The foreign exchange arrangement will give South Korea access to additional U.S. dollar liquidity. This reduces the risk of currency instability and helps Seoul manage the financial requirements of its investment pledge. For the United States, the agreement supports trade negotiations and secures a large investment commitment from a key ally.

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