Seoul Delays US Investments Amid Pressure on the Korean Won

The South Korean government has ruled out launching its planned investments in the United States during the first half of the year, a move that is expected to limit near-term dollar outflows and ease pressure on the Korean won.

Finance Minister Koo Yun-cheol said the $350 billion investment package, targeting strategic US sectors, is unlikely to begin soon due to the complexity of selecting projects, site preparation, and construction, which reduces initial capital flows.

The comments follow a trade agreement with Washington signed last November that capped annual outbound investment flows at $20 billion.

Koo noted that current foreign exchange conditions make rapid execution difficult as the Korean won continues to face depreciation pressure.

The Korean won has hovered near its weakest levels since the global financial crisis, despite strong exports and a rally in the stock market, prompting authorities to warn against speculative behavior.

Koo reaffirmed the government’s commitment to market-stabilizing measures without imposing additional controls, while accelerating investments in sectors such as artificial intelligence and nuclear energy to support economic growth.