South Korea’s finance minister says current FX level ‘excessive’

SEOUL (June 23): South Korea’s Finance Minister Koo Yun-cheol said at a Cabinet meeting on Tuesday that the current foreign exchange level at around mid-1,500 won per US dollar is “excessive” compared to the country’s fundamentals.

Asked by South Korean President Lee Jae Myung about why the won is so weak despite strong exports and a record-high current account surplus, Koo said profit-taking by foreign investors holding local equities was putting downward pressure on the currency.

Foreign investors are estimated to have sold around 140 trillion won (US$91.21 billion) for portfolio rebalancing during a rapid rally of the South Korean stock market, Koo said, without elaborating on the period.

The regulators will prevent sudden volatility in markets, Koo added.

Uploaded by Liza Shireen Koshy