Archive · 16 Sep 2025
South Korea's Trade Deal Stalled: Concerns Over Won, US Demands
South Korea and the U.S. are in trade deal negotiations, but they have stalled.
The U.S. wants South Korea to accept a deal similar to the one Japan signed.
South Korea is worried about how this deal could impact their currency, the won, especially with the potential for significant dollar demand from a large investment fund.
South Korea's currency market is smaller and has a tighter grip compared to Japan's.
South Korea is looking for ways to protect its currency and requested a currency swap line with the U.S. to help with dollar demand.
South Korea's trade deal negotiations with the U.S. are stalled.
The U.S. wants South Korea to agree to terms similar to Japan's investment package.
South Korea is concerned about the impact of a $350 billion investment fund.
South Korea's economy and currency market are smaller than Japan's.
South Korea is seeking a currency swap line with the U.S. to help stabilize its currency.
- Who
- South Korea and the U.S.
- What
- Negotiations on a trade deal have stalled.
- When
- Negotiations stalled after a deal was finalized with Japan this month.
- Where
- South Korea and the U.S.
- Why
- Concerns over the foreign exchange implications.
- Investment Package (Japan)
- $550 billion
- South Korea's Daily Won Trade (2022)
- $142 billion
- Japanese Yen Daily Trade (2022)
- $1.25 trillion
- South Korea's Current Account Surplus (last year)
- $99 billion
- Japan's Current Account Surplus (last year)
- Nearly $200 billion
- South Korea's Foreign Reserves (August)
- $416 billion
- Japan's Foreign Reserves (August)
- $1.3 trillion