The Korean won's decline narrowed, reports: South Korea plans to temporarily postpone $20 billion in investments to the US to ease pressure on its currency depreciation.

Given the continued pressure on the Korean won to depreciate, South Korea has decided to postpone a previously scheduled investment commitment to the United States of up to $20 billion this year. On January 20th, according to sources cited by Bloomberg, **this investment will be delayed until the foreign exchange market stabilizes.** The source said that the current capital outflow from businesses and individual investors is putting substantial pressure on the won, but the exchange rate is expected to gradually stabilize in the future. Since the second half of 2025, the won has fallen more than 8% against the US dollar. Despite multiple market interventions by authorities, the currency has still dropped to its lowest level since the global financial crisis. As part of a trade agreement, South Korea had earlier pledged to invest a total of $350 billion in the United States. This long-term capital outflow plan has further raised concerns in the market about its financing capability and currency stability. After the announcement of the investment delay, the decline of the won against the dollar noticeably narrowed. At the time of writing, the won was quoted at 1476.05 per US dollar. Trade Agreement Contains Flexible Clauses According to [CCTV News](https://news.cctv.com/2025/11/14/ARTIaOqThjxLvxO1B4LQZNmb251114.shtml), in November last year, the South Korean government announced that **South Korea and the United States had officially signed a South Korean investment agreement worth $350 billion**. Of this, $150 billion will be invested in the US shipbuilding industry, while another $200 billion will cover high-tech sectors such as energy, semiconductors, pharmaceuticals, key minerals, and artificial intelligence. According to the agreement, as a corresponding condition, the Trump administration lowered tariffs on imports from South Korea. The agreement also sets a key restriction: annual capital outflow from South Korea to the United States may not exceed $20 billion. The US agreed to set this annual cap and allows South Korea to flexibly adjust the pace of capital outflows in the event of forex market instability to safeguard its currency market stability. Addressing recent market attention on investment progress, the Korean Ministry of Finance, in response to Bloomberg News, cited previous remarks by the minister to **clarify that the total $350 billion investment plan in the United States is unlikely to start in the first half of 2026.** Korean Won Remains Weak Data shows the won continues to face depreciation pressure against the US dollar, at one point approaching the key psychological threshold of 1 US dollar to 1,600 won in intraday trading. Although US Treasury Secretary Scott Besant stated last week that "won weakness does not align with the country's strong economic fundamentals," providing a brief boost to the currency. Besant's comments led to a notable one-day rebound for the won on January 14, but the exchange rate fell again in the following two trading days, reflecting continued market caution about the outlook for the Korean won. Risk Notice and Disclaimer The market involves risks; investment needs caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation, or needs of any individual user. Users should consider whether any opinions, viewpoints, or conclusions in this article fit their particular circumstances. Investments made accordingly are at the user’s risk.