Koo Yun-cheol, deputy prime minister for the economy and Minister of Economy and Finance, said on the 1st, "An excessive won weakness divorced from fundamentals does not help our economy." He offered verbal intervention after the won-dollar rate broke through 1,530 won on the previous day for the first time in 17 years since the global financial crisis.
Koo wrote in a post on X (formerly Twitter) at 9:38 a.m. that day, "With uncertainty in the Middle East persisting for over a month, the won has shown large volatility." He added, "Since the start of this year, exports have hit a record high, and from today, Treasury bonds are also being included in the World Government Bond Index (WGBI)."
He went on, "With the passage of the three tax bills for exchange rate stability in the National Assembly yesterday, we expect that as the repatriation of overseas securities investment funds through the Returning Investor Account (RIA) gets underway in earnest and dividends from overseas affiliates increase, it will help stabilize the exchange rate."
Koo's verbal intervention came after the foreign exchange market opened. The won-dollar rate opened at 1,508.5 won, down 21.6 won from the previous day. It fell by more than 20 won just a day after closing at 1,530.1 won, up 14.4 won the day before. Since the Middle East crisis, exchange rate swings have widened. The intraday exchange rate fluctuation, comparing the day's high and low, averaged 19.8 won from the 1st to the 30th of last month.