The government held the second meeting of the "four-party consultative body for exchange-rate response" on the 30th. It came six days after the first meeting on the 24th. The first meeting included only the Ministry of Economy and Finance (MOEF), the Health and Welfare Ministry, the Bank of Korea, and the National Pension Service, but the second meeting also brought in the Ministry of Trade and Industry (MOTI), the Financial Services Commission (FSC), and the Financial Supervisory Service (FSS). The market reaction is that "the government is raising the level of its exchange-rate response by a notch."
In a text message to the press on the 1st, the government said, "On Sunday (Nov. 30), the Ministry of Economy and Finance (MOEF), the Health and Welfare Ministry, the Ministry of Trade and Industry (MOTI), the Financial Services Commission (FSC), the Bank of Korea, and the Financial Supervisory Service (FSS) reviewed the structural conditions of the foreign exchange market," adding, "We decided to swiftly push ahead with policy tasks to stabilize foreign exchange supply and demand."
The government said it decided to begin, through the four-party consultative body, policy discussions to prepare a New Framework to harmonize the National Pension Service's profitability and the stability of the foreign exchange market. It also said it began detailed consultations to extend the foreign exchange swap contract between the National Pension Service and the foreign exchange authorities, which is set to expire at the end of this year.
The government went on to say it would regularly check the status of export corporations' currency conversion and overseas investment, and review ways to link these with corporate support policy tools such as policy funds.
In addition, the government said, "The Financial Supervisory Service (FSS) will conduct, from December this year through January next year, a fact-finding inspection of financial companies such as securities companies regarding the adequacy of investor briefings and protection related to overseas investments."
Meanwhile, the won-dollar exchange rate reached 1,477.1 won on the 24th. That was the highest since Apr. 9 (1,484.1 won). The rate then fell in succession, closing at 1,464.9 won on the 27th. However, on the 28th, it rose again to 1,470.60 won, affected by factors such as foreign investors' net selling of stocks.