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| ▲ Finance Minister Koo Yun-cheol speaks to reporters in Washington, D.C., on April 15, 2026 (local time), in this photo provided by the finance ministry. (PHOTO NOT FOR SALE) (Yonhap) |
finance minister-FX market
Finance chief says FX market will stabilize once Middle East risk eases
SEOUL, April 16 (Yonhap) -- South Korea's foreign exchange market will stabilize once risks stemming from tensions in the Middle East are resolved, Finance Minister Koo Yun-cheol said.
"If risks related to the Middle East conflict are resolved, the market will regain stability," the minister told reporters in Washington on Wednesday (U.S. time), according to the finance ministry.
Koo is currently on a visit to the U.S. to attend a meeting of Group of 20 finance ministers and annual gatherings of the International Monetary Fund and the World Bank.
The finance minister insisted that the Korean won, which he said has diverged excessively from economic fundamentals, is expected to return to "normal" levels once the government's major foreign exchange policies are put in place.
When asked what level would be considered normal, Koo said it was difficult to specify because foreign exchange rates are determined by the market.
"Given the current conditions of foreign currency supply, foreign investors are showing strong interest in investing in the domestic market," he said.
Koo also emphasized the Seoul government's efforts to meet its national goal of 2 percent growth for this year.
"If the war ends as early as next week, the target may be achieved with relatively limited effort, but if it continues, broader policy responses will be required," he was quoted as saying.
"With international organizations projecting growth at 1.9 percent, how quickly the Middle East conflict ends will be crucial," he added.
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