Moon Ji-seong, Vice Minister for International Economic Affairs at South Korea's Ministry of Finance and Economy, stated on the 10th that the current exchange rate level deviates from fundamentals and identified multiple variables that could reverse the downward trend. In an interview with Yonhap Infomax, Moon assessed that the exchange rate remains misaligned with fundamentals and predicted second-half supply-demand conditions will gradually reflect fundamentals. The comments come amid ongoing joint inspections by the Bank of Korea and Financial Supervisory Service into market irregularities and increased coordination among Korea-US-Japan FX authorities.
Moon Assesses Exchange Rate Deviation from Fundamentals
Moon told Yonhap Infomax that "the current exchange rate is still at a level that deviates from fundamentals" and stated "second-half supply-demand will gradually change to reflect fundamentals." He noted that "forward FX selling by exporters will increase further" and evaluated that "the impact of the Middle East war on the exchange rate has already been largely reflected, reducing market sensitivity."
Ministry Finalizes Joint Inspection on Market Manipulation
Moon assessed that recent market manipulation activities have significantly decreased. He stated "the joint inspection by the Bank of Korea and Financial Supervisory Service is in its final stages" and confirmed "if problems are discovered, we plan to take corrective action." He emphasized the ministry is considering countermeasures specifically targeting false quote submission activities. Moon explained that "the 24-hour opening of the FX market enhanced market transparency and expanded the authorities' playing field" and stated "the authorities' response capacity has actually increased."
Korea-US-Japan FX Authorities Schedule Multiple Coordination Meetings
Moon revealed "many consultation opportunities between Korea-US-Japan FX authorities are scheduled ahead." He mentioned "when meeting with overseas investors, they already recognize Korea as a developed country" and stated "capital and FX market advancement and won internationalization are important." Moon indicated he has been "fully monitoring the FX market since early June" and signaled plans to continue closely examining market conditions.
FAQ
What did Moon Ji-seong say about South Korea's exchange rate on the 10th?
Moon Ji-seong, Vice Minister for International Economic Affairs at South Korea's Ministry of Finance and Economy, stated the current exchange rate deviates from fundamentals and identified multiple variables that could reverse the trend. He told Yonhap Infomax that second-half supply-demand conditions will gradually reflect fundamentals.
Why is South Korea's Ministry of Finance conducting joint inspections on FX market manipulation?
The Bank of Korea and Financial Supervisory Service are conducting joint inspections in response to market manipulation concerns. Moon stated the inspection is in its final stages and the ministry plans corrective action if problems are discovered. He emphasized the ministry is considering countermeasures specifically for false quote submission activities.
