Korea's return to US currency watch list unlikely to shake FX market: analysts - The Korea Times

U.S. Treasury Secretary Scott Bessent arrives at Incheon International Airport, May 13, to meet President Lee Jae Myung before heading to China for the May 14-15 U.S.-China summit. Korea Times photo by Kang Ye-jin

Korea’s renewed inclusion on the U.S. Treasury Department’s currency monitoring list is unlikely to have a significant impact on the local foreign exchange market, analysts in Seoul said Friday, dismissing the semiannual report as a largely routine event with limited immediate policy implications.

“The report drew much more attention early in President Donald Trump’s term last year. But it doesn’t result in any concrete measures, so it has become something of an old issue," said Lee Jung-hoon, an analyst at Daishin Securities. "I don’t expect it to have much impact on the market."

Kwon A-min, an analyst at NH Investment & Securities, also said the Treasury's foreign exchange report has become increasingly formulaic in recent years, shedding much of the political undertone it once carried.

"I expect little impact on the market from the report," Kwon said.