Seoul, June 6 (IANS) The finance ministry here vowed on Friday to enhance communications with the United States to strengthen mutual understanding and trust regarding foreign exchange rate policies.

The pledge came after the U.S. Treasury Department kept South Korea on its monitoring list for currency practices. Seoul was reinstated on the list in November 2024 after being removed in November 2023 for the first time since April 2016.

“We will continue to expand mutual understanding and trust regarding exchange rate policies through regular communication with the U.S. Treasury Department,” the ministry said in a press release, reports Yonhap news agency.

“Ongoing discussions between the Korean and U.S. financial authorities on exchange rate issues will also be conducted thoroughly,” it added.

Currency policy has been one of the key topics in bilateral negotiations related to U.S. President Donald Trump’s administration’s sweeping tariff measures.

In April, the two countries agreed to focus their talks on four categories — tariff and non-tariff measures, economic security, investment cooperation and currency policy. They aim to reach a “package” agreement by July 8, when the 90-day suspension of Washington’s tariff implementation is set to expire.

Last month, South Korea’s Deputy Finance Minister Choi Ji-young met with U.S. Treasury Assistant Secretary for International Finance Robert Kaproth on the sidelines of the 58th Asian Development Bank (ADB) Annual Meeting in Milan to discuss currency-related issues.

Meanwhile, the US department released the updated “monitoring list” in the semiannual “Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States.” South Korea was put back on the list in November last year after it was excluded in November 2023 for the first time since April 2016.

The latest monitoring list comprises South Korea, China, Japan, Taiwan, Singapore, Vietnam, Germany, Ireland and Switzerland. All except Ireland and Switzerland were on the list in the November 2024 report.

The report ascribed South Korea’s inclusion on the list to its bilateral trade surplus and material current account surplus.

—IANS

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