South Korea's request for a currency swap arrangement with the United States was rejected by Washington, Deputy Prime Minister and Finance Minister Koo Yun-cheol revealed.
At a National Assembly special committee meeting on U.S. investment legislation held on the 4th, Koo confirmed "yes" when Rep. Park Sung-hoon of the People Power Party asked whether Korea "couldn't do the swap rather than chose not to."
"Our government raised the issue several times, but the U.S. held the view that Korea's dollar holdings are not insufficient," Koo explained. "The Korean government holds $400 billion, the National Pension Service holds $500 billion, and ordinary citizens hold over $100 billion—so Korea has more than $1 trillion. The U.S. perspective is: why should we provide a currency swap?"
Regarding the won-dollar exchange rate exceeding 1,500 won, Koo said the government is "monitoring with heightened vigilance through daily checks," adding that "this could change once external shock factors stabilize."