* Date : 2017-10-17
On the 4th, South Korea and the United States agreed to discuss the FTA amendment. This revised consultation was, in fact, foreseen for a long time. President Trump, who promoted US priority, has consistently argued that the US-Korea FTA is an "unfair treaty for the US" since his presidential election. In July, President Trump discussed the amendment of the Korea-US FTA without discussing with the South Korean government at the announcement of the joint press release, just after the summit. In the end, at the Second Session of the Joint Commission of the Korea-US Free Trade Agreement, the two countries agreed to enter into the Korea-US FTA negotiation process. It is noteworthy how this revised consultation will affect the economy of both countries.
The Korea-China currency swap expired at midnight on the 11th, after the announcement of the Korea-US FTA amendment negotiations. 'Currency Swap' is an agreement that allows exchange of different currencies at pre-set exchange rates. It is believed to be a 'breakwater for foreign exchange' aiming to stabilize the foreign exchange market. The two countries signed the currency swap for the first time in April of 2009, and the size has increased from $4 billion to $56 billion. However, as the extension became uncertain ahead of the expiration after 8 years and 6 months, some speculate that it was due to the THAAD deployment on the Korean peninsula. In the meantime, some say that the economic ties between Korea and China will improve as the decision to expend the currency swap was decided on the 13th....as this week, we'll discuss in-depth, the current status and future prospects of the Korean economy, which is facing rapid changes due to the KORUS FTA amendment negotiation and the expiration of the Korea-China currency swap.