Policy Chief Warns Against "Betting on Won Weakness"... "Let Me Be Clear: We Have Exchange Rate Measures"

Presidential Office Holds Performance Briefing on the 7th
Concerns Raised Over Seriousness of High Won-Dollar Exchange Rate
Kim Yong-beom: "We Have a Framework for Proper Management"

On the 7th, attendees are applauding at the six-month performance meeting of President Lee Jae-myung's government held at the Yongsan Presidential Office. From the front row on the right: Kang Hoon-sik, Chief of the Presidential Secretariat; Wi Sung-rak, Director of the National Security Office; Kim Yong-beom, Director of the Policy Office; Woo Sang-ho, Senior Secretary for Political Affairs; Lee Kyu-yeon, Senior Secretary for Public Relations and Communication; Jeon Seong-hwan, Senior Secretary for Listening and Integration; and Bong Wook, Senior Secretary for Civil Affairs. Photo by Yonhap News Agency

The Presidential Office has issued a warning that it has government-level countermeasures in place against speculative bets on the weakening of the Korean won due to the high exchange rate.

Kim Yong-beom, Director of the Policy Office at the Presidential Office, made this statement during the 'Six-Month Performance Briefing of the Lee Jae-myung Administration' held at the Yongsan Presidential Office on December 7. He was responding to a question about concerns that the recent depreciation of the won against the US dollar has become a very serious issue.

Director Kim stated, "There are reports that some are betting on the weakening of the won, believing that the exchange rate issue is not being properly managed. Let me be clear: we have appropriate measures in place."

He added, "We are communicating with the market about the results of meetings between relevant ministers regarding the exchange rate. The burden from the exchange rate appears to have become more pronounced recently, as overseas investments by various economic agents have become highly active."

He further explained, "We are currently working on several issues: repatriating corporate overseas profits back to Korea, monitoring for risks or excessive losses in individuals' overseas investments, and addressing the National Pension Service's overseas investments."

Director Kim went on to say, "Domestic growth is recovering rapidly, and there are conditions that could allow us to narrow the interest rate gap between Korea and the United States to some extent. Therefore, we have established a framework to manage the exchange rate appropriately."