South Korean Vice Finance Minister Heo Jang held a meeting with major export companies on the 21st to discuss foreign exchange market stabilization, requesting increased foreign currency conversion and repatriation of overseas funds. The meeting aimed to solidify recent improvements in foreign exchange supply-demand balance following volatility earlier in the year. Participants included representatives from Samsung Electronics, SK Hynix, Hyundai Motor and Kia, HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries, who reviewed recent foreign exchange transaction trends and discussed public-private cooperation measures to reduce market volatility.
Dollar-Won Exchange Rate Falls from 1,550 Won Range to Late 1,400s
Vice Minister Heo stated that the dollar-won exchange rate, which had risen to the 1,550 won range just before the June export company meeting, recently fell to the late 1,400 won range in a short period. He attributed this decline to expanded foreign currency negotiations by export companies, forward exchange selling by shipbuilders, and fund inflows from SK Hynix's American Depositary Receipt (ADR) issuance. The Minister noted that supply-demand imbalances have partially eased. He added that offshore investors' dollar buying momentum, which had expanded while betting on won weakness, has also somewhat moderated.
Government Projects 290 Billion Dollar Current Account Surplus
The government projects this year's current account surplus at 290 billion dollars, more than double last year's record 123.1 billion dollars. Vice Minister Heo stated that second-half foreign currency supply-demand conditions will further improve based on solid economic fundamentals including continued semiconductor sector strength. He emphasized that while external uncertainties such as the ongoing Middle East conflict persist, the government's determination to quickly stabilize the market's shifting sentiment is firm. The Minister stressed that the government has secured sufficient response capacity for market stabilization.
Minister Requests Export Companies Increase Currency Conversion
Vice Minister Heo requested major export companies play an active role in converting export proceeds and foreign currency deposits, and expanding domestic inflows of overseas retained funds, considering changed foreign exchange market conditions. Attending companies acknowledged that foreign exchange market stability serves as a foundation for reducing overall business environment uncertainty and establishing a stable investment and management base. The companies agreed to participate more responsibly in the government's efforts to stabilize foreign exchange supply-demand so that recent improvement trends can firmly establish as a stable foreign exchange market framework.
Export Companies Agree to Cooperate on Market Stabilization
Meeting participants agreed that the recent supply-demand improvement flow should definitively settle into a stable foreign exchange market framework. Export company representatives committed to participating with a more responsible attitude in the government's foreign exchange supply-demand stabilization efforts. The Finance Ministry reported that the meeting took place at the Government Seoul Complex in Jongno-gu, Seoul.
FAQ
What did South Korea's Vice Finance Minister discuss with export companies on the 21st?
Vice Finance Minister Heo Jang met with representatives from Samsung Electronics, SK Hynix, Hyundai Motor and Kia, HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries to discuss foreign exchange market stabilization. He requested increased foreign currency conversion of export proceeds and repatriation of overseas funds to solidify recent improvements in supply-demand balance.
How much did the dollar-won exchange rate fall recently?
The dollar-won exchange rate fell from the 1,550 won range just before the June export company meeting to the late 1,400 won range recently. Vice Minister Heo attributed this decline to expanded foreign currency negotiations by export companies, forward exchange selling by shipbuilders, and fund inflows from SK Hynix's ADR issuance.
What is South Korea's projected current account surplus for this year?
The South Korean government projects this year's current account surplus at 290 billion dollars, more than double last year's record 123.1 billion dollars. Vice Minister Heo stated that second-half foreign currency supply-demand conditions will further improve based on continued semiconductor sector strength and solid economic fundamentals.
