Gov"t to Introduce a Safeguard System for Foreign Currency
The government will introduce a safeguard system in the foreign currency market on April 1, 1999.The safeguards will attempt to control both incoming and outgoing foreign currency. In the event of an emerging situation that the government feels could pose a problem, the government will approve outflows of foreign currency only on a case-by-case basis and ask those who bring foreign currency into the country to deposit a portion of those funds into the Bank of Korea to prevent too much foreign currency inflow.
The period will be at the longest six months but it can be extended if it is felt necessary.
Korean and foreign investors will both come under this new system. The government will not apply the new system to current trade in foreign exchange, just capital trade.
with the Korea JoongAng Daily
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