[Commentary] Coupang Outside Director, the Warsh Shock on the Exchange Rate, and the Price of Parochial Politics: How Far Will It Go? (2026.02.03)

(This commentary is posted in the Pension Future Forum's statement category on the grounds that it provides a wealth of information on the exchange rate issue and other matters that have recently emerged as the most pressing concerns.)

On January 30, 2026, United States President Donald Trump nominated Kevin Warsh as Chair of the Federal Reserve. Markets responded immediately.

The won–dollar exchange rate surged from 1,439 won to approximately 1,462 won, while the KOSPI plunged roughly 5%, falling to the 4,930 range.

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The government characterized this as "a diplomatic success." However, no concrete implementation plan whatsoever was put in place.

The most critical element is the Special Act on Investment in the United States. Without this legislation, the government has no legal basis for disbursing 350 billion dollars. On November 27, 2025, Kim Byeong-gi, then floor leader of the Democratic Party of Korea, introduced the Special Act on Investment in the United States.

Remarkably, this bill was never once placed on the agenda of a National Assembly standing committee after its introduction.

Why was it left unaddressed for seven months? Because the Korean Confederation of Trade Unions (KCTU) and farmers' organizations—core constituencies of the Democratic Party—opposed it vigorously.

In October 2025, the KCTU issued a statement of opposition declaring that "investment in the United States amounts to economic plunder and job destruction," arguing that the relocation of factories to the United States threatens workers' livelihoods.

Farmers' organizations also cried out against "opaque negotiations" out of concern over further liberalization of agricultural and livestock product markets. The Democratic Party deferred progress on the bill almost immediately after its introduction under the pretext of "careful review"—taking its cue from its support base.

A review of the minutes of the National Assembly Finance and Economy Planning Committee confirms that the Special Act on Investment in the United States was never placed on the agenda—neither in plenary session nor in subcommittee.

Of the committee's 26 members, 15 belong to the Democratic Party. With its commanding majority, the party could have advanced the bill at any time. Yet the Democratic Party did nothing.

People Power Party lawmaker Jang Dong-hyeok directly charged that "the Democratic Party is deferring the bill under pressure from the KCTU." This was, in fact, accurate.

https://www.fntoday.co.kr/news/articleView.html?idxno=376429