[2024 National Audit] Lee Chang-yong: "No Shortage of Ammunition for Foreign Exchange Market Intervention"

Lee Chang-yong, Governor of the Bank of Korea, said regarding the use of the Foreign Exchange Stabilization Fund to prevent tax revenue shortfalls, "I do not think we lack ammunition to intervene in the foreign exchange market."

Bank of Korea Governor Lee Chang-yong is responding to lawmakers' questions during the audit of the Ministry of Economy and Finance and the Bank of Korea at the Planning and Finance Committee of the National Assembly held on the 29th.

At the comprehensive audit of the National Assembly's Planning and Finance Committee held on the 29th in Yeouido, Seoul, in response to Jeong Il-young, a member of the Democratic Party of Korea, expressing concern, "The won-dollar exchange rate is at a considerably worrisome level, so is it acceptable to use the Foreign Exchange Stabilization Fund, which acts as a foreign exchange breakwater, to cover the shortfall in tax revenue?" Governor Lee said, "The Foreign Exchange Stabilization Fund itself is sufficient enough to intervene in the foreign exchange market, and how to use it is a secondary issue."

He added, "The use of the Foreign Exchange Stabilization Fund and exchange rate stability do not have a direct impact when considering the scale," and "Whether to use the Foreign Exchange Stabilization Fund should be judged based on which fund is used and how it is utilized."

He continued, "Not only the Foreign Exchange Stabilization Fund but also the Bank of Korea's issuance power exists, so I do not think we lack ammunition to intervene in the foreign exchange market."