President Lee Meets U.S. Treasury Secretary: Stresses "Commercial Rationality" in Talks... Discusses "Currency Swap" (Comprehensive)

President Lee: "Korea's Economic Scale and Foreign Exchange Market Differ from Japan... Discussions Must Align with Both Countries' Interests"
Secretary Besant: "There May Be Temporary Difficulties, But They Are Fully Surmountable"
Korea-U.S. Currency Swap Discussed Amid Foreign Exchange Market Concerns
Kim Yongbeom: "This Meeting Will Be a Critical Turning Point in Future Tariff Negotiations"

President Lee Jaemyung, who is currently visiting New York, United States, to attend the United Nations General Assembly, met with Treasury Secretary Scott Besant at the Permanent Mission of the Republic of Korea to the United Nations on the 24th (local time) to discuss the stalled Korea-U.S. tariff negotiations. This meeting between President Lee and Secretary Besant took place about a month after their previous encounter, which was held in Washington, D.C. in August on the occasion of the Korea-U.S. summit.

Yonhap News

According to Kim Yongbeom, Policy Chief of the Presidential Office, President Lee emphasized during the meeting that "the Korea-U.S. relationship is extremely important as an alliance, and close cooperation between the two countries is crucial not only for security but also for the development and maintenance of the alliance in economic terms." He added, "While cooperation on security is progressing well, it is also necessary to achieve constructive discussions in the area of trade." The meeting was also attended by Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol, National Security Advisor Wi Sungrak, and Policy Chief Kim Yongbeom.

President Lee reiterated the importance of "commercial rationality" regarding the 350 billion dollar investment fund for the United States. He stated, "I hope that discussions will advance in a way that aligns with the interests of both countries based on commercial rationality." He added, "Although there was a recent agreement on a U.S.-bound investment package between the United States and Japan, Korea differs significantly from Japan in terms of economic scale and foreign exchange market infrastructure." President Lee further requested, "I hope that these aspects will be taken into account so that the negotiations proceed smoothly."

Yonhap News

In response, Secretary Besant acknowledged that there may be temporary difficulties but expressed confidence that they can be fully overcome. He said, "The Korea-U.S. alliance is strong, and while there may be short-term and temporary challenges, they are fully surmountable. Korea's cooperation in the shipbuilding sector, which the United States considers a key industry, is extremely important, and we appreciate your active support." Secretary Besant also commented, "I understand that there has been progress in trade concerning the Korea-U.S. trade negotiations," and added, "I have listened carefully to President Lee's remarks regarding the U.S.-bound investment fund and will discuss them internally."

The meeting also included discussions on foreign exchange market issues, including the possibility of a Korea-U.S. currency swap. The Korean government maintains the position that, since operating a 350 billion dollar U.S.-bound investment fund as requested by the United States could cause significant instability in the foreign exchange market, it is necessary to establish safeguards such as an unlimited currency swap agreement. Kim Yongbeom explained, "We discussed this issue with Secretary Besant, who is the minister in charge of foreign exchange market matters." He added, "Last week, Bank of Korea Governor Lee Changyong also met with Secretary Besant at the International Monetary Fund headquarters during a special lecture and conveyed his views on the currency swap."

Kim Yongbeom further stated that the meeting between President Lee and Secretary Besant would serve as a critical turning point for future tariff negotiations. He said, "The foreign exchange market issue has been raised as a very important matter in the discussions between the two countries," and emphasized, "Given that President Lee provided a detailed explanation of the foreign exchange market issue to Secretary Besant, this meeting will serve as a significant milestone in subsequent negotiations."

Meanwhile, the meeting took place after Secretary Besant was unable to attend the "Korea Investment Summit" scheduled for the 25th at the New York Stock Exchange (NYSE) due to commitments with President Trump. Kim Yongbeom explained, "We initially invited Secretary Besant to the Korea Economic Briefing on the 25th, but as he became increasingly involved in President Trump's schedule, he ultimately could not attend. Secretary Besant's team requested this meeting and asked for our understanding."

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