BOK chief nominee says FX risks in S. Korea limited amid ample dollar liquidity

▲ Shin Hyun-song, nominee for Bank of Korea governor, answers reporters' questions as he arrives at his confirmation hearing preparation office in central Seoul on March 31, 2026. (Yonhap)

BOK chief nominee-Middle East conflict

BOK chief nominee says FX risks in S. Korea limited amid ample dollar liquidity

SEOUL, March 31 (Yonhap) -- Shin Hyun-song, nominee for governor of the Bank of Korea (BOK), said Tuesday there are no major concerns over the current level of the local currency, emphasizing that dollar liquidity remains ample.

Shin made the remarks in response to reporters' questions as he began preparations for a parliamentary confirmation hearing. He was nominated last week to lead the central bank and replace incumbent Gov. Rhee Chang-yong at the end of his four-year term next month.

"I do not attach much significance to the (won-U.S. dollar) exchange rate level itself. What matters is whether the market can absorb related risks, and in that sense, there are no major concerns," Shin said.

"Strong dollar liquidity means there is no need to directly link exchange rate movements with financial instability, as was often the case in the past," he added.

The won has hovered around the psychologically significant 1,500 won-per-dollar mark in recent sessions and fell to as low as 1,517.3 on a closing basis last week, as the monthlong conflict involving Iran escalated, pushing up global oil prices and stoking fears of broader economic impacts.

On Tuesday, the currency opened at 1,519.9 won per dollar, its lowest level in about 17 years.

Shin pointed to the Middle East crisis and rising global oil prices as key risks facing the economy, voicing support for policy easing measures, such as a supplementary budget.

"Policy easing may be necessary as the Middle East situation adds to economic difficulties," he said, noting that the inflationary impact of the envisioned extra budget would likely be limited at its current scale and design.

The government is seeking to draw up a 25 trillion-won (US$16.39 billion) supplementary budget aimed at stabilizing the economy from the impact of the ongoing conflict, with the National Assembly expected to pass the bill by next Friday.

On the monetary policy path, Shin remained cautious.

"It is necessary to wait and see, given uncertainties over how the Middle East situation will unfold and how long it will last," he said.

Responding to market views that categorize him as a hawk, Shin said such binary labels are not appropriate.

"What matters is accurately reading overall economic conditions and understanding how financial structures interact with the real economy, and then responding flexibly depending on the situation," he said.

Shin, a former senior official at the Bank for International Settlements (BIS), will undergo a parliamentary confirmation hearing, though the process is widely seen as a formality as his appointment does not require approval from the National Assembly.

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