The U.S. and South Korea agree to reserve foreign exchange interventions for combating volatility, not for competitive purposes. No bilateral swap line included in the agreement, requested by Seoul. Efforts to avoid manipulating exchange rates reaffirmed under IMF Articles of Agreement. Measures will not target exchange rates for competition.

Unlike Japan’s agreement, South Korea emphasizes monitoring currency market “stability”. Government investment abroad for diversification, not competitive exchange rate targeting. Concerns raised about South Korea’s National Pension Service and its foreign assets. Market intervention reserved for combating excessive volatility in exchange rates.

South Korea and U.S. to exchange market intervention operations monthly. Public disclosures quarterly with a three-month delay. South Korea to disclose foreign exchange reserves data monthly, forward positions, and central bank reserves annually. Currency policy consultation ongoing since April between the two countries.

Negotiations on a July deal reducing U.S. tariffs on Korean imports stalled over foreign exchange concerns. Won weakens 3% in the second half of the year amid uncertainty over trade talks with the U.S. South Korea investments in the U.S. remain pending. Exchange rate implications impact negotiations.

Read more at Yahoo Finance: US, South Korea agree not to target FX rates for trade advantage