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Heo Jang, Vice Finance Minister, delivers opening remarks at a meeting with exporters on foreign exchange market conditions at the Government Complex Seoul in Jongno District on June 11. (Photo courtesy of the Ministry of Economy and Finance) |
[Alpha Biz= Kim Jisun] The South Korean government has asked major exporters, including Samsung Electronics and SK Hynix, to help stabilize the foreign exchange market as the Korean won continues to trade above 1,500 per U.S. dollar.
Vice Finance Minister Heo Jang and Vice Trade Minister Moon Shin-hak held a meeting with key export-oriented companies on June 11 at the Government Complex Seoul. Participants included Hyundai Motor Company, Kia, HD Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries, and Hanwha Ocean.
Heo urged exporters to play a role in improving supply-demand conditions in the FX market and easing volatility, discussing measures such as promptly converting export proceeds into won and increasing the repatriation of overseas funds.
The meeting came as the won-dollar exchange rate remained above the 1,500 level for 17 consecutive trading sessions as of June 10.
Authorities expect the currency to recover if foreign investors’ stock sell-off subsides but noted that speculative trading betting on further won weakness and market distortions have intensified volatility. Delays by exporters in converting overseas earnings into won are also seen as contributing to the currency’s depreciation.
Moon emphasized that corporate cooperation is crucial to minimizing the negative impact of a weak currency on exports and the broader economy. He added that the government will step up efforts to stabilize the FX market and expand support measures, including import insurance, to help companies cope with rising raw material costs.
Participating companies said excessive currency volatility increases exchange rate risks and business uncertainty, and pledged to cooperate with the government’s efforts to stabilize the market.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
