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

Korea's planned $20 billion annual investment in the United States is unlikely to exert pressure on the won, according to Bank of Korea Governor Shin Hyun-song. Speaking at the Jackson Hole Economic Policy Symposium, Shin stated that the local currency has grown more resilient to external shocks, making the investment manageable considering Korea's foreign exchange reserves.

The memorandum of understanding between Korea and the U.S. outlines the potential annual investment of up to $20 billion, though the amount could be lower depending on the situation. When asked if the investment might pressure the won, Shin affirmed that Seoul's commitment aligns with a broader $350 billion investment framework with Washington in exchange for reduced tariffs.

However, concerns have arisen that the investment could further strain the foreign exchange market by boosting dollar demand, especially if the won stays weak.