Koo Yun-cheol, Deputy Prime Minister and Minister of the Ministry of Economy and Finance, said on the 4th regarding the recent foreign exchange market situation that "we are closely monitoring with a high level of vigilance" and "we will immediately take necessary measures against excessive herding." On the day, the won-dollar exchange rate surpassed 1,530 won intraday for the first time since Mar. 31.
Deputy Prime Minister Koo held a market situation inspection meeting at Government Complex Seoul on the day and stated accordingly that "volatility is expanding due to the Middle East war and continued foreign selling of stocks."
He said, "In particular, supply-demand factors stemming from foreign investors' 'rebalancing' (temporary weight adjustment) and profit-taking amid a surge in the domestic stock market are further amplifying volatility." The foreign ownership ratio in our stock market expanded from 32.9% at the end of last year to 38.3% as of the 2nd. This year, foreigners' net selling of stocks amounts to 12.7 trillion won, with 6.6 trillion won net sold over the most recent 18 trading days in a row.
Deputy Prime Minister Koo, regarding the recent increase in stock trading through borrowing such as margin financing, said, "We will ensure preemptive risk management and investor protection," and regarding the expansion of bond market volatility, said, "If excessive volatility occurs, the relevant agencies will work in tandem to respond in a timely manner."