Seoul says latest U.S. Treasury report recognizes won's 'excessive' depreciation

▲ This captured image from the U.S. Treasury Department shows the front page of the department's Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States. (PHOTO NOT FOR SALE) (Yonhap)

finance ministry-US monitoring list

Seoul says latest U.S. Treasury report recognizes won's 'excessive' depreciation

By Kim Han-joo

SEOUL, Jan. 30 (Yonhap) -- South Korea's finance ministry said Friday the latest U.S. Treasury Department report reflects Washington's recognition of the Korean won's "excessive" depreciation against the U.S. dollar.

In the report, the United States kept South Korea on its list of countries to monitor for foreign exchange policies. South Korea was removed from the list in November 2023 for the first time since April 2016 but was added back in November 2024 and has remained on the list since.

The report further said "the won depreciated further in late 2025, which was not in line with Korea's strong economic fundamentals."

"This assessment suggests the U.S. Treasury views the one-sided and excessive weakening of the won since the second half of last year as inappropriate," the Ministry of Economy and Finance said.

The Treasury's comments are in line with earlier remarks by U.S. Treasury Secretary Scott Bessent, who said the recent weakness of the won was inconsistent with South Korea's strong economic fundamentals, which, he also said, was "undesirable."

The ministry said it will continue to expand mutual understanding and trust regarding the foreign exchange market and maintain cooperation with the U.S. to help ensure market stability.

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