Finance Minister Choi Sang-mok (Yonhap)
Finance Minister Choi Sang-mok (Yonhap)

South Korea's foreign exchange rate policy has emerged as a major item in trade consultations between Seoul and Washington amid the continued weakness of the Korean won.

On Friday, Finance Minister Choi Sang-mok told reporters the currency exchange rate issue is among the four major items to be discussed in future trade talks between the two allies.

The other three items are tariff and non-tariff measures, economic security and investment cooperation, according to the Ministry of Economy and Finance.

"The two countries' finance ministries will hold separate consultations on the FX policy issue, with working-level talks expected to start soon," Choi said.

The remarks came a few hours after Choi and Industry Minister Ahn Duk-geun held "2+2" trade consultations with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer in Washington and agreed to pursue a package deal by July 8 -- when US President Donald Trump's 90-day pause on "reciprocal" tariffs will end.

The foreign exchange policy issue is a relatively fresh topic in trade talks between the two countries, which have been exchanging opinions on tariff and non-tariff measures and investment cooperation in recent months.

Details of Thursday's discussions on exchange rate policy were not immediately available, but experts say the United States may have raised an issue with the recent weakening of the Korean won.

Earlier this month, the local currency fell to as low as 1,484.1 won against the US dollar, the lowest level in about 16 years, after Trump announced "reciprocal" tariffs that include a 25 percent tariff for South Korea, along with a 10 percent baseline tariff on foreign imports.

On Sunday, Trump posted eight types of what he called "non-tariff cheating" on his social media, putting "currency manipulation" on top of the list.

Choi, however, said "there was no mention at all" about the currency manipulation issue in the "2+2" meeting.

The Seoul government has claimed South Korea has not engaged in any currency manipulation.

"The Trump administration seems to be thinking that countries have been intentionally depreciating their currencies to achieve a trade surplus with the US," said Austin Chang, president of the institute for international trade under the Korea International Trade Association.

"I think it should not be an issue with South Korea since the country did not weaken its currency intentionally, and actually does not want a weak Korean won," Chang said, explaining the Korean won has naturally weakened due to political issues, such as the ouster of former President Yoon Suk Yeol and uncertainties deriving from US tariffs. (Yonhap)