Won-Dollar Exchange Rate Surges Past 1,480
High Exchange Rate Persists Despite Verbal Intervention
Ahn Cheolsoo: "President Lee Must Present Exchange Rate Measures"
As the won-dollar exchange rate surged past the 1,480-won mark, Ahn Cheolsoo, a member of the People Power Party, criticized, "Despite the financial crisis-level foreign exchange turmoil, President Lee Jaemyung has not mentioned any solution or even a small policy guideline." On the 24th, Assemblyman Ahn stated on social media, "The exchange rate broke through 1,484 won during the day, and it has long since surpassed 1,500 won at airport currency exchange counters."
Ahn Cheol-soo, a member of the People Power Party, criticized, "Despite the financial crisis-level foreign exchange turmoil, President Lee Jae-myung has not mentioned any solution or even a small policy guideline." Yonhap News
Ahn pointed out, "Since President Lee mentioned the 'high exchange rate' on June 26, there has not been a single official statement referring to the exchange rate," adding, "Because of the exchange rate, the prices of imported goods, including oil, are rising, and the profits of export companies are melting away. Small neighborhood stores can't even cover their costs and are running deeper deficits the more they operate, and even short-term jobs for young people are being reduced."
He argued, "The exchange rate is a key economic indicator that shows how global economic actors view the future of a country. The fact that the exchange rate is rising and the value of the won is falling means that, under the current government's economic policies, the outlook for Korea's future is seen as bleak." He continued, "But is it reasonable that President Lee has not mentioned the word 'exchange rate' or presented any countermeasures for six months?"
He further stated, "President Lee must do what needs to be done. Stop the fake work of touring the country and criticizing public officials, and focus on real issues like the exchange rate, interest rates, and prices. It has been 180 days since June 26 without any mention of the exchange rate. I will watch to see on which day he finally addresses the exchange rate and presents countermeasures."
Lee Chang-yong, Governor of the Bank of Korea, stated on the 17th that the high exchange rate situation is "not a financial crisis where financial institutions collapse and there is a risk of national default." Yonhap News
Recently, the Ministry of Economy and Finance, the Bank of Korea, and other foreign exchange authorities have been attempting to stabilize the exchange rate through verbal intervention, but the high exchange rate persists.
Lee Changyong, Governor of the Bank of Korea, stated on the 17th, "Since Korea is currently a net external creditor, there are many who benefit when the exchange rate depreciates," adding, "This is not a financial crisis where financial institutions collapse and there is a risk of national default." However, he also said, "The exchange rate has a significant impact on prices, and there are clear winners and losers domestically. This could create an environment where social cohesion becomes difficult. Considering issues like widening growth disparities, I do not believe the exchange rate is at a reassuring level."
On the 18th, Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol said in an interview with the YouTube channel 'Sampyo TV', "The current exchange rate is the result of high demand in terms of supply and demand," adding, "At the same time, there is a perception that the domestic stock market is relatively less attractive." He stated, "The government has no intention of blaming or holding responsible those who seek better investment opportunities overseas," and predicted, "If policies to revitalize the domestic stock market become visible, the exchange rate will gradually stabilize." He also announced, "We will foster venture companies and industries that can yield higher returns than overseas investments, provide incentives for long-term stock investment, and promote measures to protect shareholder interests."
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