Citibank: South Korea's $350 billion investment in the US may intensify pressure on South Korean won depreciation.

Citibank analyst Jin-Wook Kim says that South Korea's pledge to invest $35 billion in the United States could put pressure on the Korean won. Learning from the lessons of the 1997-1998 financial crisis, South Korea is unlikely to tap into its $416 billion foreign exchange reserves, so public institutions may need to raise $20 to $30 billion in foreign currency annually. Citibank predicts that South Korea will ask the United States to provide solutions for potential foreign exchange shocks and seek an extension of the investment commitment period.