The United States has retained South Korea on its foreign exchange policy monitoring list, maintaining pressure on Seoul to address concerns over currency management and trade competitiveness.
The decision, reported by Yonhap, underscores the persistent friction between Washington and Seoul regarding exchange rate practices, despite South Korea's efforts to stabilize its currency amid global volatility.
36 billion in June, according to data from the Bank of Korea.
The monitoring list is a key tool used by the U.S. Treasury to flag countries it believes may be manipulating their currencies to gain an unfair trade advantage.
While not a sanction, the designation can lead to increased diplomatic pressure and potential trade remedies.
For South Korea, remaining on the list complicates its broader economic diplomacy, particularly as it seeks to strengthen ties with the U.S. on security and technology issues.
South Korea’s foreign exchange reserves rose to US$427.36 billion in June, according to data from the Bank of Korea.