South Korea's Strategic Trade Balancing Act with the U.S.

In a bid to ensure that trade negotiations with the United States are mutually beneficial and grounded in commercial sense, South Korean President Lee Jae Myung held discussions with U.S. Treasury Secretary Scott Bessent. This conversation took place at the United Nations on Wednesday during the General Assembly, according to a statement from the president's office.

The dialogue centered around a massive $350 billion investment package, initially settled between President Lee and U.S. President Donald Trump. The agreement aims to lower tariffs on South Korean goods, enhancing bilateral trade. Chief policy secretary Kim Yong-beom emphasized the importance of South Korea's unique economic landscape in finalizing talks.

Further discussions involving Finance Minister Koo Yun-cheol and Secretary Bessent explored an FX swap to buffer South Korea's financial markets, though specifics were scarce. As Japan closes a $550 billion deal affecting its currency rates, South Korea is keen to secure a trade pact that doesn't jeopardize its economic stability. With the won dropping to 1,403.8 per dollar, the situation is critical.

(With inputs from agencies.)