South Korea's President says U.S. tariffs talks are causing FX instability

South Korea's President Lee Jae Myung said that the ongoing negotiations with the U.S. over tariffs had caused instability in the country's foreign exchange market; however, he showed confidence that a solution will soon be reached.

Lee made the remarks while attending the United Nations General Assembly meeting this week in New York.

"President Lee said there is concern that instability can arise in South Korea's foreign exchange market during the course of tariff negotiations with the U.S. but the two sides will be able to find a solution that ensures commercial rationality," a statement from Lee's office read, as per a _Reuters_ report [https://www.reuters.com/world/asia-pacific/south-korean-president-says-us-tariffs-talks-worrying-fx-market-2025-09-23/].

Earlier, Lee told [https://www.reuters.com/world/china/south-koreas-president-lee-says-us-investment-demands-would-spark-financial-2025-09-21/] _Reuters_, “Without a currency swap, if we were to withdraw $350 billion in the manner that the U.S. is demanding and to invest this all in cash in the U.S., South Korea would face a situation as it had in the 1997 financial crisis.”

Lee’s remarks came as President Trump’s administration imposed substantially higher tariffs on South Korean steel and aluminum, with rates rising from 25% to 50% as of June 2025 and potentially expanding to include more products.

South Korea is currently in talks to negotiate a trade deal with the U.S.
[South Korea trade cargo container hanging against clouds background]
Iskandar Zulkarnaen/iStock via Getty Images

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