Foreign Exchange Authorities Hold Emergency Weekend Meeting... Health and Industry Ministries Participate

Discussion on Foreign Exchange Market Trends and Response Strategies

As the USD-KRW exchange rate continues to rise, the government convened an emergency meeting to formulate countermeasures.

According to the government on December 14, Deputy Prime Minister and Minister of Economy and Finance Koo Yuncheol presided over a joint 'Emergency Economic Ministers' Meeting' with relevant agencies at the Government Complex Seoul that afternoon. The meeting reportedly reviewed trends in domestic and international financial and foreign exchange markets and discussed possible responses, but no official statement was released regarding the outcome of the meeting.

A currency exchange booth in Myeongdong, Jung-gu, Seoul, on the 14th, as the average USD-KRW exchange rate this month exceeded 1,470 won, marking the highest monthly level since the foreign exchange crisis. Photo by Yonhap News

The fact that the government convened an emergency meeting on a weekend afternoon suggests that the movements in the foreign exchange market are highly unusual. The average USD-KRW exchange rate this month has exceeded 1,470 won, soaring to the highest monthly level since the foreign exchange crisis. On December 12, the weekly closing price was 1,473.7 won, but during after-hours trading, it climbed as high as 1,479.9 won, approaching the 1,500 won mark.

The meeting was attended by Financial Services Commission Chairman Lee Eogwon, Bank of Korea Governor Rhee Changyong, Financial Supervisory Service Governor Lee Chanjin, Senior Presidential Secretary for Economic Growth Ha Junkyung, First Vice Minister of Health and Welfare Lee Seuran, and Director General for Industrial Policy at the Ministry of Trade, Industry and Energy Park Dongil.

The participation of officials from the Ministry of Health and Welfare and the Ministry of Trade, Industry and Energy, in addition to the usual foreign exchange and financial authorities, indicates a comprehensive review of key players in the foreign exchange market, including the National Pension Service's overseas investments and export companies' dollar holdings. At the same time, it reflects the presidential office's close monitoring of exchange rate movements.