South Korea, U.S. to Coordinate Response to Won's Steep Slide

South Korea and the United States said they will coordinate more closely as the Korean won remains under pressure, following a meeting in Washington between South Korean Deputy Finance Minister Moon Jisung and U.S. foreign-exchange officials. Officials signaled a shared view that the won's depreciation does not reflect South Korea's underlying economic fundamentals, and indicated readiness to take steps to address persistent weakness. The won has been trading around 1,518–1,520 per U.S. dollar, down more than 11% over the past 12 months. In January, the U.S. Treasury noted in its assessment that the forces pushing the won lower appeared inconsistent with South Korea's strong economic backdrop. By May, South Korean authorities had sharpened their tone, describing the currency's moves as "excessive" and warning they were prepared for decisive market action. The latest coordination builds on earlier 2025 trade agreements between the two countries that included tariff reductions and supported sizable Korean investment into U.S. industries. South Korea has a long track record of intervening to smooth foreign-exchange volatility, using both verbal guidance and direct market operations. The new understanding adds a more explicit bilateral framework to that approach. Investors are also watching the inflation implications. A weaker won raises the local-currency cost of imports, pressuring consumer prices. With South Korea reliant on imported energy and raw materials, currency depreciation can act like an inflation tax on households and businesses. Crypto markets are another area to monitor. South Korea remains one of the world's most active crypto-trading hubs, and periods of currency instability have historically coincided with stronger retail interest in digital assets.