[2023 National Audit] Financial Services Commission Chairman "Difficult to Agree on Concerns of Foreign Exchange Outflow Due to Korea-US Interest Rate Gap"

Financial Services Commission Chairman Kim Ju-hyun is responding to lawmakers' questions at the Political Affairs Committee's audit held at the National Assembly on the 11th. Photo by Kim Hyun-min kimhyun81@

On the 11th, Kim Ju-hyun, Chairman of the Financial Services Commission, expressed difficulty in agreeing with concerns about foreign exchange outflows arising from the widening interest rate gap between South Korea and the United States.

During the National Assembly's Finance and Economy Committee's audit of the Financial Services Commission, in response to Park Sung-jun, a member of the Democratic Party of Korea, who pointed out concerns about foreign exchange outflows due to the interest rate inversion between Korea and the U.S., Chairman Kim replied, "I find it difficult to agree with the statement that foreign exchange will inevitably outflow just because of an interest rate difference."

Chairman Kim emphasized, "There are various types of foreign exchange outflows," adding, "There are outflows from the bond market and from the capital market, and each has different factors."

He further explained, "When there are abnormal transactions in the foreign exchange market, intervention by authorities is common not only in our country but also in other countries."

Regarding the analysis that a high interest rate environment may persist domestically for some time due to additional rate hikes in the U.S., he responded, "I have been considering that possibility a lot."