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Deputy prime minister addresses growing uncertainty over foreign exchange market

Published: 14 Nov. 2025, 12:31 Updated: 14 Nov. 2025, 15:31

From left are Financial Supervisory Service Governor Lee Chan-jin, Bank of Korea Gov. Rhee Chang-yong, Deputy Prime Minister and Finance Minister Koo Yun-cheol and Financial Services Commission Chairman Lee Eog-weon, posing for a photo before the start of a market conditions review meeting at the Government Complex Seoul in Jongno District, central Seoul, on Nov. 14. [MINISTRY OF ECONOMY AND FINANCE]

Deputy Prime Minister and Finance Minister Koo Yun-cheol on Friday expressed concern over rising uncertainty in the foreign exchange market and said the government would actively deploy all available measures if needed.

Presiding over a market conditions review meeting at the Government Complex Seoul in Jongno District, central Seoul, Koo said that “uncertainty in the foreign exchange [FX] market is increasing” and that authorities “will actively utilize all available tools to respond if imbalances in FX supply and demand persist.”

The meeting was attended by Bank of Korea Gov. Rhee Chang-yong, Financial Services Commission Chairman Lee Eog-weon and Financial Supervisory Service Gov. Lee Chan-jin.

Participants assessed that while the domestic stock market shows some short-term volatility, it remains generally stable, according to the Finance Ministry. They added that although government bond yields have risen amid shifting expectations on future interest rate trends, demand for Korean sovereign debt remains solid considering Korea’s expected inclusion in the World Government Bond Index next year.

However, on the foreign exchange front, they voiced concern that “uncertainty has expanded,” noting that the won-dollar exchange rate briefly climbed above 1,470 won per dollar due to a surge in residents’ overseas investment. They agreed that “structural improvement in FX supply and demand is necessary.”

Koo warned that if FX imbalances driven by overseas investment continue, “market expectations for a weaker won could become entrenched, significantly affecting the lower bound of the exchange rate,” stressing that the government must be ready “to actively use all available measures.”

The Finance Ministry added that financial and FX authorities will closely analyze the drivers behind the won’s depreciation and work with major FX players — including the National Pension Service and major exporters — to prepare measures to stabilize the currency in the interest of the broader economy and the financial and foreign exchange markets.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JEONG HYE-JEONG [[email protected]]