On the 2nd, it emerged that more central government ministries are switching the way they send expense payments in dollars and other currencies to international organizations where their affiliated civil servants are dispatched, from "lump sum" to "installments." With the won-dollar exchange rate soaring, they judged it would be advantageous to wait for the rate to fall before remitting. In the Sejong government complex, some say this amounts to the government "doing forex tactics in a high-exchange-rate era."

On the afternoon of the 2nd, an electronic board in the dealing room at Woori Bank's headquarters in Jung-gu, Seoul displays the exchange rate. In the Seoul foreign exchange market, the won–dollar rate is trading at 1,464.30 won per dollar, up 24.80 won (1.72%) from the previous day. /Courtesy of News1

For a Korean civil servant to work at the UN and other bodies, they use the "international organization employment leave system." They first take leave from their ministry, work at an international organization for two to three years, and then return. While they are at the international organization, personnel costs are borne by the Korean government. Until now, the total aggregates of one year's personnel costs have been paid in a lump sum.

But starting last year, cases of switching from lump-sum payment to installment payment began to appear frequently. This mainly coincided with periods when the won-dollar exchange rate spiked. According to the Ministry of Personnel Management, last year 54 out of a total of 135 positions (40%) with international organization employment leave had their personnel costs paid in installments.

A government official said, "Each ministry receives its budget in won and executes it for international organization personnel costs, and if the exchange rate rises far above the level assumed at the time of budgeting, a shortfall occurs," adding, "Some international organizations allow partitioning payment." Another official said, "By paying in installments, we can first reduce dollar remittances, and if the exchange rate falls later, we can handle dollar remittances with relatively less expense."

When the government drew up the budget last year for expenditures to be paid in foreign currency, it applied an exchange rate of 1,380 won (won-dollar rate). But the actual average rate was 1,422 won and at one point exceeded 1,480 won.

With the high exchange rate persisting, the Ministry of Personnel Management increased this year's budget for personnel costs of civil servants dispatched to international organizations to 44.223 billion won. That is a 33% increase from last year's 33.345 billion won, the largest increase on record.

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