Choo Kyung-ho and Yellen Meet in the US... "Continued IRA Discussions, Reaffirmed Cooperation on Foreign Exchange Market"

Choo Kyung-ho Requests Yellen's Continued Attention on IRA Issues
Both Sides Agree to Continue Related Consultations
Cooperation in Foreign Exchange Market... No Concrete Discussion on Currency Swap
Gift of Seal Engraved with Yellen's Name... Symbolizing Strengthened Cooperation

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, who is visiting Washington DC, USA to attend the G20 Finance Ministers Meeting and the IMF/WB Annual Meetings, is having a meeting with U.S. Treasury Secretary Janet Yellen at the International Monetary Fund (IMF) headquarters on the 13th (local time).
Photo by Ministry of Economy and Finance

[Asia Economy Washington DC=Reporter Moon Jewon]

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho and U.S. Treasury Secretary Janet Yellen agreed to continue discussions on the Inflation Reduction Act (IRA), which is the top concern for Korean companies. Regarding the recently unstable foreign exchange market, they agreed to cooperate if necessary, but it was reported that there were no concrete outcomes such as the conclusion of a Korea-U.S. currency swap agreement.

On the 13th (local time), immediately after the G20 Finance Ministers' Meeting held in Washington DC, Choo met with Secretary Yellen to review matters discussed at the Finance Ministers' Meeting on July 29 and the conference call on the 30th of last month. The two met naturally after the meeting for a side meeting, and the conversation lasted about 7 to 8 minutes.

On this day, Deputy Prime Minister Choo requested Secretary Yellen's continued attention to the issue of the IRA electric vehicle tax credit. This is interpreted as a plea to work towards preparing amendments, as Korean companies could suffer from subsidy discrimination due to the IRA passed by the U.S. Congress. Earlier, at a New York correspondent meeting on the 11th (local time), Choo also said regarding the IRA, "We are conveying through various channels to seek alternatives." The Ministry of Economy and Finance explained, "Both countries agreed to continue consultations related to the IRA."

Deputy Prime Minister Choo and Secretary Yellen also reaffirmed the shared understanding between Korean and U.S. financial authorities regarding recent foreign exchange market issues during the conference call last month. On the conference call on the 30th of last month, they discussed cooperating to implement liquidity supply measures if financial instability worsens due to liquidity shortages spreading in Korea and other countries caused by the U.S.'s rapid interest rate hikes.

However, it is known that discussions on concluding a Korea-U.S. currency swap agreement have not progressed further. Recently, as the won-dollar exchange rate has soared past 1,400 won, many experts in academia and elsewhere have voiced the need for a Korea-U.S. currency swap to stabilize the foreign exchange market, but it is difficult to secure cooperation from the U.S. side. Earlier, on the 7th, Bank of Korea Governor Lee Chang-yong said at a National Assembly audit, "It is true that a Korea-U.S. currency swap helps stabilize the sentiment of our economic agents."

On this day, Deputy Prime Minister Choo presented Secretary Yellen with a jade-colored seal engraved with her name. Secretary Yellen is known to have a hobby of collecting minerals and rocks. A Ministry of Economy and Finance official explained that the gift of the seal was intended to strengthen cooperation between the two countries, symbolizing 'rock solid' as in being as firm as a rock. On the same day, Secretary Yellen gave Deputy Prime Minister Choo a painting depicting the U.S. Treasury Department as a gift.

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, who is visiting Washington DC, USA to attend the G20 Finance Ministers' Meeting and the IMF/WB Annual Meetings, is shaking hands with U.S. Treasury Secretary Janet Yellen at the International Monetary Fund (IMF) headquarters on the 13th (local time). (Photo by Ministry of Economy and Finance)

Washington DC=Reporter Moon Jewon

This content was produced with the assistance of AI translation services.