The South Korean government said Sunday the U.S. has agreed that South Korea is not manipulating its currency for trade advantage, ending months of speculation over possible U.S. punitive action. Presidential spokesperson Kang Yu-jung told reporters that Washington and Seoul reached the understanding ahead of the U.S. Treasury Department’s semiannual foreign exchange report, which can trigger “remedial action.” The Treasury had placed Korea on its monitoring list in Nov. 2024 under President Joe Biden, and the Trump administration kept Seoul on the list in June.

Kang emphasized that the agreement is separate from talks on a dollar-won currency swaptied