Statement of the U.S. Department of the Treasury and the Ministry of Economy and Finance of the Republic of Korea

As trusted partners, the United States Department of the Treasury and the Ministry of Economy and Finance of the Republic of Korea agreed to continue their close consultations on macroeconomic and foreign exchange matters. The United States and the Republic of Korea reconfirmed they have undertaken under the IMF Articles of Agreement to avoid manipulating exchange rates or the international monetary system to prevent effective balance of payments adjustment or to gain an unfair competitive advantage.In addition, they agreed that:any macroprudential or capital flow measures will not target exchange rates for competitive purposes;government investment vehicles invest abroad for risk-adjusted return and diversification purposes, and not to target the exchange rate for competitive purposes; andin cases when intervention in foreign exchange markets may be considered, it should be reserved for combatting excess volatility and disorderly movements in exchange rates, with the expectation that this tool would be considered equally