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Analysis Currency stability becomes test of credibility for US-South Korea allianceNew law links tariff reductions and capital deployment to won stability, creating consequences if volatility accelerates The South Korean government announced the submission of the Special Act for the Management of U.S.-ROK Strategic Investment on Wednesday, which exposes a new risk structure in the alliance because its execution depends on the stability of the Korean won. If the won depreciates, as it has been doing so for the past few weeks, South Korea’s currency volatility can become the next pressure point that triggers geopolitical consequences for the alliance. NEW FRAMEWORK The South Korean government presents the legislation as an implementation mechanism for the strategic investment commitments reached during President Donald Trump’s state visitand for tariff © Korea Risk Group. All rights reserved. |





