Deputy Prime Minister and Minister of the Ministry of Economy and Finance Koo Yun-cheol said on the 18th regarding the recent high exchange rate situation, "I have no intention at all of blaming Korean retail investors trading U.S. stocks or placing responsibility on them."
Deputy Prime Minister Koo appeared on the YouTube channel "Sampo TV" that day. The host asked, "With the exchange rate high, there are comments like 'Isn't it because of Korean retail investors trading U.S. stocks?' and 'Isn't it because of the National Pension Service's overseas investment?'"
In response, Deputy Prime Minister Koo said, "There is something I want to make clear," adding, "The government has no intention at all of blaming Korean retail investors trading U.S. stocks for seeking better investment destinations and investing overseas or shifting responsibility onto them." He continued, "A considerable amount of foreign currency flows into the country, but at the same time the scale flowing out overseas is larger, which is why the exchange rate has risen."
The host asked, "There are also concerns that the National Pension Service is being mobilized to manage the exchange rate." In response, Deputy Prime Minister Koo said, "When the exchange rate rises, the won-denominated valuation of overseas asset increases, but when the exchange rate falls in the future, foreign exchange losses can occur." He added, "This applies equally not only to individual investors but also to large, long-term investors such as the National Pension Service."
Deputy Prime Minister Koo also said that the perception that the domestic stock market is relatively less attractive than other countries affects the current exchange rate. In response, he said, "In the era of the artificial intelligence (AI) great transition, we will foster ventures and industries that can generate higher returns than overseas." He also said, "We will also push measures to provide incentives for long-term investment in the domestic stock market."
Deputy Prime Minister Koo said he would prepare a concrete composition plan or a bill by the first half of next year to create the "Korea-style sovereign wealth funds" he announced at the presidential briefing on the 11th. He said, "We will entrust the money to the best private experts," adding, "It is a model that not only does not distinguish between domestic and overseas investment destinations and excludes government involvement, but also pursues higher returns through far more aggressive management."