Prime Minister Kim Min-seok said the recent rise in the won-dollar exchange rate was not due to a deterioration in the fundamentals of the Korean economy or foreign-exchange conditions, noting that foreign-exchange supply and demand factors are the main background.
During a National Assembly interpellation session on the 10th, when People Power Party lawmaker Lee In-seon pointed to the high exchange rate issue, Kim said, "It is true the exchange rate has risen, so we are watching with concern," but added, "The recent exchange rate is not in a state attributable to, for example, a rapid weakening of economic strength, a fundamentals problem, a surge in external debt, or a drop in foreign-exchange reserves."
When Lee repeatedly asked about the cause of the won's depreciation, Kim said, "Rather than saying 'this is the cause,' I would say 'this is not the cause'—for example, it is not a problem with fundamentals or the foreign-reserve situation," and explained, "At present, it is mainly the (foreign-exchange) supply and demand situation being reflected."
He also drew a line against the claim that the government is using the National Pension Service to defend the exchange rate. Kim said, "The National Pension Service operates under its own rules and with profitability as its objective, so it would be difficult to conclude that it is being used for exchange-rate defense."
When Lee then said, "Please make sure it does not become like giving only fever reducers to a sick child," Kim replied, "We will consider fever reducers, injections, and medicines comprehensively."
However, when asked about an "appropriate exchange rate level," he avoided specifics, saying, "This is a matter for officials involved in exchange-rate policy to discuss, and it does not seem like something I should speak on lightly."