The countries reached "no new agreements on currency" alongside the revised US-Korea Free Trade Agreement, the South Korean government says. It added that the trade deal and the proposed currency provisions represent two different topics.
US president Trump and his South Korean counterpart Moon Jae-in signed the new trade agreement on Monday. The White House also announced the same day that the "Treasury Department has an understanding with South Korea to avoid competitive devaluation and practices that provide an unfair competitive advantage."
Such provisions are designed to prevent one country from intentionally weakening its currency to boost exports. Trump had hoped to announce progress on the issue alongside restrictions on South Korean steel and other concessions he won under the revamped trade agreement. But such a deal would limit the policy tools at Seoul's disposal.
