South Korea's $350 Billion U.S. Investment: A Delayed Start Amid Currency Concerns

South Korea's planned $350 billion investment in U.S. strategic sectors under a trade deal is unlikely to start by early 2026 due to the weak won. Finance Minister Koo Yun-cheol says the initial outflows may be small, and macro-prudential measures to stabilize the won aren't planned.

South Korea's ambitious plan to invest $350 billion in strategic U.S. sectors, agreed under a trade deal, is unlikely to take off in the first half of 2026, according to Finance Minister Koo Yun-cheol. This delay suggests the weak won won’t face significant dollar outflows soon.

The annually capped $20 billion dollar outflow was part of a November agreement to reduce tariffs under President Trump. While discussing the forex situation, Koo indicated further macro-prudential measures to slow the won's decline are not being considered.

Despite efforts to stabilize the won, the currency remains unstable, nearing levels not seen since the 2007-2009 global financial crisis. To counteract this volatility, the government plans to introduce market-stabilizing measures and push Parliament to review a bill for a special investment fund.