Trade Talks Trigger Concerns in South Korean Markets

South Korean President Lee Jae Myung has raised alarms about possible instability in the foreign exchange market amid ongoing tariff negotiations with the United States. These concerns were shared during his recent meeting with members of the U.S. Congress in New York, coinciding with the United Nations General Assembly.

President Lee emphasized the potential impact of these talks on South Korea's markets but voiced confidence in reaching a solution that safeguards commercial rationality on both sides. The discussions form part of broader efforts to finalize a trade deal aimed at reducing import duties previously imposed by former President Donald Trump.

As the negotiations progress, the proposed deal includes a significant South Korean investment in the U.S., which could have ramifications for South Korea's foreign exchange reserves. The talks underscore the delicate balance between fostering economic ties and domestic market stability.

(With inputs from agencies.)