Bessent Warns Won Volatility Threatens Korea-US Investment Pledge
US Treasury Secretary Scott Bessent has expressed concerns about the volatility of the South Korean won, citing it as a potential complication for Korea's efforts to fulfill its $350 billion investment commitment in the US.
In an interview with CNBC, Bessent noted that the Korean currency has experienced 'excess volatility', which could be triggered by a weak yen. He emphasized the importance of a stable yen not only for Japan but also for the entire region, as a substantial weakening of the yen would likely lead to a follow-up decline in other currencies.
Bessent referenced the 1997 Asian financial crisis, stating that it was partially triggered by an 'overly weak' yen. He expressed hope that the recent intervention by the US and Japan to boost the Japanese currency will help stabilize the region.