Korea to Delay $20 Billion US Investment on Currency Pressure

South Korea will hold off on fulfilling a pledge to invest as much as $20 billion in the US this year given the pressure on its currency, according to a person familiar with the matter.

The investment will have to wait until the current foreign-exchange situation stabilizes, the person said, asking not to be identified discussing the policy. Capital outflows by companies and retail investors have weighed on the currency, though it’s expected to settle, the person said, without elaborating if the South Korean government has any levels in mind.

The won has dropped more than 8% against the dollar since the start of the second half of 2025, with a series of measures and market intervention by policymakers toward its weakest level since the global financial crisis. Korea’s pledge to invest in the US, as part of its trade deal, has stoked growing concerns over the nation’s ability to finance the capital outlay.

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While supportive comments by US Treasury Secretary Scott Bessent last week helped, it’s premature to assess the impact, the person said. Bessent had said won weakness wasn’t in line with the nation’s “strong economic fundamentals.”

The comments had sparked a one-day rally in the won on January 14 before it declined for the next sessions. The currency fell 0.1% against the dollar to 1,474.85 at 7:07 pm local time on Tuesday, paring a loss of as much as 0.5% earlier.

In November, under the terms of the formal trade agreement, the US cap its dollar outflows at $20 billion annually with flexibility to adjust timing if needed, to prevent currency market instability.

When contacted by Bloomberg News, the finance ministry referred to previous comments by its minister saying it was “unlikely” that South Korea’s $350 billion investment would kick off during the first half of 2026.