The U.S. Treasury Department kept South Korea on its foreign-exchange monitoring list alongside nine other economies in an announcement on July 24 [1].
This designation signals that the U.S. is closely watching the country's currency practices to ensure they do not unfairly impact global trade. While the Treasury did not label South Korea a currency manipulator, the continued monitoring suggests lingering concerns about the stability and valuation of the Korean won.
According to the Treasury, the Korean won has remained under sustained depreciation pressure [2]. The department said this trend was inconsistent with the country's economic fundamentals, particularly when viewed alongside a large trade surplus [2].
South Korea has now appeared on this monitoring list for four consecutive times [3]. The list currently includes 10 economies in total [1].
Despite the continued monitoring of South Korea, the Treasury report found that no major trading partner manipulated its currency for a trade advantage in 2025 [4]. This indicates that while specific nations remain under surveillance, the broader global trading environment did not experience systemic currency manipulation during that calendar year.
The U.S. Treasury uses these reports to maintain transparency and encourage fair trade practices among its partners. The process involves analyzing bilateral trade balances, current account balances, and the scale of foreign exchange interventions.
“The U.S. Treasury Department kept South Korea on its foreign-exchange monitoring list alongside nine other economies.”
The U.S. Treasury's decision to maintain South Korea on the monitoring list suggests a disconnect between the won's market value and the country's strong trade performance. By citing 'sustained depreciation pressure,' the U.S. is signaling that it believes the won may be undervalued, which could give South Korean exports an artificial price advantage. While the lack of a 'manipulator' label prevents immediate sanctions, the repeated inclusion on the list puts diplomatic pressure on Seoul to ensure its currency policies align with its economic fundamentals.
