Korea's $20 bil. US investment unlikely to pressure won: BOK chief

Korea's potential annual investment of up to $20 billion in the United States is not expected to exert pressure on the won, according to Bank of Korea Governor Shin Hyun-song. Speaking at the Jackson Hole Economic Policy Symposium in Wyoming, Shin emphasized that the currency has become more resilient to external shocks. He stated that the size of the investment is feasible, considering Korea's foreign exchange reserves.

The memorandum of understanding outlines the planned $20 billion annual investment in the U.S., though the actual amount may vary depending on circumstances. When asked if the investment could put pressure on the won, Shin responded that the Bank of Korea is confident in the currency's stability. Seoul's commitment to invest up to $20 billion per year is part of a broader $350 billion investment deal with Washington, which includes lower tariffs.

However, there have been concerns that the investment might increase demand for dollars, especially if the won continues to weaken.