As the won-dollar exchange rate continues its upward trend, threatening to surpass the 1,480 won level, the government has convened an emergency meeting to devise countermeasures.
On December 14, the Ministry of Economy and Finance announced that Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol presided over a joint 'Emergency Economic Ministers' Meeting' with related agencies at the Government Complex Seoul that afternoon. During the meeting, they reviewed domestic and international financial and foreign exchange market trends and discussed response strategies. The ministry did not issue a separate statement regarding the outcome of the meeting.
The fact that the government convened an emergency meeting on a Sunday afternoon is seen as an indication that it considers the recent movements in the foreign exchange market to be highly unusual. This month, the won-dollar exchange rate has surpassed 1,470 won, reaching its 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, coming close to the 1,500 won mark.
According to the Ministry of Economy and Finance, attendees at the meeting included 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 of 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, beyond the usual scope of foreign exchange and financial authorities, suggests that the government is taking a comprehensive look at major supply and demand factors in the foreign exchange market, including overseas investments by the National Pension Service and dollar holdings by export companies. At the same time, it indicates that the Presidential Office is closely monitoring exchange rate movements.
In the market, there is a prevailing view that unless there are significant changes in key price-determining factors-such as economic growth, interest rate differentials with major countries, and investment demand-the upward trend in the exchange rate is likely to continue for the time being, regardless of short-term supply and demand factors.
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