Lee, Bessent discuss swap and tariff negotiations

President Lee Jae-myung said on Sept. 24 in New York that he expects discussions on a $350 billion investment package in the United States to “advance in a way that reflects the interests of both countries based on commercial rationality” during his meeting with U.S. Treasury Secretary Scott Bessent. With 35 days remaining until the Asia-Pacific Economic Cooperation summit in Gyeongju, North Gyeongsang Province, negotiations over issues such as an unlimited currency swap and tariffs are expected to gain momentum.

Lee met Bessent at the Permanent Mission of Korea to the United Nations in New York and said, “Korea is different from Japan in terms of economic size and foreign exchange market infrastructure. I hope negotiations proceed well with these factors in mind,” according to Kim Yong-beom, senior presidential secretary for policy. The presidential office said the meeting with Bessent was arranged at the request of the United States.

“The Korea-U.S. alliance is strong. While there may be temporary or short-term challenges, we can fully overcome them,” Bessent told Lee. “I understand there has been meaningful progress in trade negotiations. I listened closely to your comments on investment cooperation and will ensure thorough discussion within our government.”

The meeting was said to have focused on an unlimited currency swap. Bessent reportedly told Lee he would pass along Korea’s request for safeguards, including a swap arrangement, to President Donald Trump. Lee told Reuters earlier that without a currency swap, a $350 billion cash investment under U.S. terms could expose Korea to a crisis reminiscent of 1997.

Kim described the meeting as a turning point in future foreign exchange negotiations between Korea and the United States, as President Lee explained his key points on the market in detail. He emphasized, “An unlimited currency swap is a necessary condition. Without it, the shock would be too great to move to the next stage.” At the same time, he cautioned that a currency swap alone does not solve everything, suggesting that follow-up tariff negotiations could be concluded only if the U.S. investment fund also proves its business viability.


Hoon-Sang Park tigermask@donga.com