As the won-dollar exchange rate continues around the 1,500-won level, Cheong Wa Dae, regarding the high exchange rate situation, said, "The U.S. Treasury's exchange-rate line understands Korea's circumstances very deeply and is always observing." It also said, "It is important for Korea, and naturally of interest to the United States as well, that the exchange-rate market move in line with fundamentals."
A senior Cheong Wa Dae official on the 12th (local time) said at an on-site briefing in Italy, where President Lee Jae-myung is on a state visit, about the background of Deputy Minister Moon Ji-seong of the Ministry of Economy and Finance's visit to Washington, D.C., "It is not related to the recent exchange-rate situation, and I understand it as a routine matter such as 'strengthening cooperation on international finance lines' between South Korea and the United States," and said this.
Deputy Minister Moon's trip to the United States came amid concerns that the recent decline in the won's value could affect $350 billion in investments in the United States. Under the joint fact sheet (JFS) released by the two leaders last year, the two countries set an annual cap of $20 billion, but agreed to adjust the timing and size of investments if instability in the foreign exchange market, such as the won's situation, emerges. It is a safeguard to minimize shocks to the foreign exchange market.
Regarding this, the official answered, "There isn't a specific level concerning investments in the United States," but added, "Rather than a matter of which level of the foreign exchange market is acceptable or not, the exchange rate needs to stabilize somewhat." The official continued, "There is a general view that it would help when discussing U.S.-bound investment funds if the timing is one where it is judged to be somewhat stable, rather than when there is a large divergence from Korea's fundamentals and ordinary citizens feel the exchange rate is unstable."
The official added, "Since we move in tandem with the yen, it is natural for Korea to be interested in Japan's efforts to stabilize its foreign exchange market, and there are times when Japan also cooperates with Korea's efforts (to stabilize the won-dollar market)," and said, "Please understand this as sharing perceptions among international finance lines such as Korea, Japan, and the United States."