Koo Yun-cheol, Deputy Prime Minister for Economic Affairs and Minister of the Ministry of Economy and Finance, held an emergency meeting of economic ministers at 4 p.m. on the 14th to discuss responses to the exchange rate. On the 11th (local time), the U.S. Federal Reserve (Fed) cut its benchmark interest rate, narrowing the interest rate gap between Korea and the United States, but the won-dollar exchange rate is still in the 1,470-won range.
According to the government, the meeting was attended by Lee Eog-weon, chair of the Financial Services Commission (FSC), Rhee Chang-yong, governor of the Bank of Korea (BOK), Lee Chan-jin, governor of the Financial Supervisory Service (FSS), Ha Jun-kyung, senior secretary for economic growth at the presidential office, Lee Seu-ran, first vice minister of the Ministry of Health and Welfare, and Park Dong-il, director general for industrial policy at the Ministry of Trade and Industry (MOTI). They reviewed recent trends in domestic and overseas financial and foreign exchange markets during the meeting.
It is the first time under the Lee Jae-myung administration that economic ministers have gathered to respond to the exchange rate. The government's convening of an emergency meeting on a Sunday afternoon appears to signal that it will move to respond to the exchange rate before the foreign exchange market opens on the 15th.
So far this month, the won-dollar exchange rate has averaged above 1,470 won, marking the highest monthly level since the foreign exchange crisis. Compared with major country currencies, the won was shown to have declined only against the dollar.
Earlier, on the 24th of last month, the government formed a "four-party consultative body" (Ministry of Economy and Finance (MOEF), Bank of Korea (BOK), National Pension Service, Ministry of Health and Welfare) to respond to the exchange rate. At the second meeting of the consultative body on the 30th of last month, the Ministry of Trade and Industry (MOTI), the Financial Services Commission (FSC), and the Financial Supervisory Service (FSS) additionally took part.