Ahn Cheol-soo of the People Power Party called on President Lee Jae-myung to set up a "task force on exchange-rate measures (TF)" after the won-dollar exchange rate broke through the 1,560-won level.
On the 6th, Ahn said on his social media that "the exchange rate has surpassed 1,560 won," noting it is "the highest level in 17 years since the global financial crisis." During the financial crisis in March 2009, the rate climbed to 1,561 won.
Ahn added, "President Lee Jae-myung must immediately establish even a 'TF on exchange-rate measures' at the Blue House and respond proactively," saying, "The causes of the weak won are the accumulation of widening fiscal deficits, entrenched low growth, a regulation-centered, anti-business environment, and an uncertain external trade strategy."
Ahn also pressed Lee, saying, "Yesterday the KOSPI plunged more than 5%," and asked, "Is it acceptable to just pour and splash money to blindly push up the KOSPI figure?"
He continued, "Propping up the index without overhauling the overall economic structure will ultimately have a bigger negative impact on the economy in the medium to long term," adding, "What is needed now is a precise mix of fiscal and currency policy, a tangible strengthening of the foreign-exchange safety net, and above all, fundamentally changing the structure of the economy so that corporations and capital can once again trust and invest in Korea."
Ahn also assessed that the weak won is the result of global economic actors losing confidence in Korea's economy.
He said, "The exchange rate is a comprehensive assessment by global stakeholders of a country's finances, growth, industry, policy, and diplomacy," adding, "The current rate is evidence that distrust in the structure and future of our economy is growing."
He went on, "With the expansion of Middle East risk piling on, the value of the won is collapsing helplessly," adding, "In an economic environment where capital and corporations do not want to stay, it is only natural for the currency's value to weaken."
He added, "In the face of a triple whammy of 1,560 won to the dollar, a KOSPI plunge, and 20 straight days of foreign investor outflows, the president's silence sends the wrong signal to financial markets," saying, "Before it is too late, Lee must draw up accurate and fundamental measures on the heaviest and hardest issues—exchange rates, interest rates, prices, and home prices—and answer to the public."