Koo Yun-cheol, Deputy Prime Minister for Economic Affairs and Minister of the Ministry of Economy and Finance, said on the 5th regarding the surging won-dollar exchange rate, "Making the domestic market competitive and attractive is the fundamental solution."
Deputy Prime Minister Koo appeared on MBC radio that day and said, "In the short term, we must balance foreign exchange supply and demand so the market can find stability," and added, "In the long term, we need to enhance the competitiveness of our corporations and the nation." He continued, "In the long term, we think we should raise national competitiveness to build an economy where foreign exchange overflows."
Asked whether there was any plan to use the National Pension Service to defend the exchange rate, Deputy Prime Minister Koo answered, "There is absolutely no government intervention in the National Pension Service's asset management." Koo said, "As pension income increases, there is demand for (dollars) through overseas investments in the process of managing assets, but when it is time to pay out pensions, dollars must be brought back, which can lower the exchange rate through a (won) appreciation." He emphasized, "With this in mind, we intend to create a new framework."
Regarding concerns about high inflation caused by the rising won-dollar exchange rate, Deputy Prime Minister Koo said, "We are managing it as a top priority by measures such as lowering tariffs through tariff quotas and releasing government stockpiles." He said, "We will do our best so there is no hardship from price instability."
On the growth outlook for next year, Deputy Prime Minister Koo said, "We forecast growth in the high 1% range, but the Organization for Economic Cooperation and Development (OECD) sees it at over 2%," adding, "We will review it again when we announce next year's economic management plan." In Aug., the Ministry of Economy and Finance projected next year's economic growth rate at 1.8% in the "New government economic growth strategy."