Ruling Party and Government Reach Consensus on Korea-US Currency Swap... "Other Countries Like Japan Also Actively Considering"

"Acts as a Brake in the Situation of Rising Exchange Rates"

Prime Minister Han Duck-soo (from the left), Kwon Seong-dong, Floor Leader of the People Power Party, and Sung Il-jong, Chairman of the Policy Committee, are moving to the meeting room during a high-level party-government consultation held on the 17th at the Prime Minister's official residence in Samcheong-dong, Jongno-gu, Seoul, discussing COVID-19 and economic measures. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Hyunju Lee] On the 17th, the ruling party and the government held the 2nd High-level Ruling Party-Government Council and reached a consensus on the Korea-US currency swap. It is expected that this will put a brake on the high exchange rate situation.

Yang Geum-hee, the floor spokesperson of the People Power Party, said at a briefing with reporters after the High-level Ruling Party-Government Council, "We fully agreed," adding, "If the currency swap is concluded, it will serve as a brake mechanism on the rising exchange rate."

Spokesperson Yang added, "The government is actively reviewing and promoting currency swaps not only with the US but also with other countries such as Japan."

Regarding the criticism that the 400 million KRW threshold for housing prices, which switches from variable to fixed interest rates, is too low, she said, "The party has actively requested opinion reviews, but I think the government needs to conduct further reviews." On concerns about moral hazard, she responded, "The future generations of the Republic of Korea may face many issues as credit delinquents due to this matter, so preventing such issues is a priority."

Regarding the reduction of the oil tax, she said, "There is no change in the policy that if (oil tax) continues to rise, we will have to reduce the oil tax even if it means changing the law."