Kim Yong-beom, presidential chief of staff for policy, gives a briefing on President Lee Jae-myung’s meeting with U.S. Treasury Secretary Scott Bessent at the United Nations headquarters in New York on September 24 (local time). (Yonhap)
SEOUL, Sept. 25 (Korea Bizwire) — A top South Korean presidential aide said Wednesday that a potential currency swap with the United States is an essential safeguard in ongoing trade talks, but not sufficient on its own to resolve the thorny negotiations.
Kim Yong-beom, presidential chief of staff for policy, told reporters in New York that an unlimited swap would serve as a “necessary condition” to stabilize markets, but emphasized it would not automatically unlock South Korea’s $350 billion investment pledge outlined in the July trade framework with Washington.
“Without a swap, the shock would be too great, and we could not move forward,” Kim said. “But even with one, there must also be sufficient conditions such as commercial rationality and adherence to our legal and fiscal limits.”
According to Kim, Seoul initially assumed most of the investment package would be delivered through loans or guarantees, a view reflected in internal memorandums. But U.S. negotiators have pressed for more equity-style commitments, raising concerns in Seoul about potential strains on Korea’s foreign exchange market.
“We are trying to ensure cash flow is defined more in terms of loans and guarantees, not pure equity,” Kim said, adding that negotiations are underway to adjust the language. He noted that proposals such as a 90–10 split of early profits had been floated to better align with Korean interests.
Kim underscored that any deal must remain within the bounds of Korean law and could require parliamentary approval if significant burdens arise. He also ruled out discussions on sensitive sectors such as rice and beef, stressing that non-tariff measures remain off the table.
The comments came as President Lee Jae-myung met U.S. Treasury Secretary Scott Bessent on the sidelines of the U.N. General Assembly. Kim described the encounter as “positive” and said both sides were striving to deliver results ahead of the Asia-Pacific Economic Cooperation summit in Gyeongju in November.
“Our principle is clear: negotiations must yield outcomes that are commercially rational, tolerable for Korea, and mutually beneficial,” Kim said. “Deadlines will not force us to sacrifice those principles.”
M. H. Lee (mhlee@koreabizwire.com)
