Finance Minister says won's early slump misaligned with South Korea's fundamentals

During a press briefing in Bangkok, Finance Minister Lee Hyoung-il described the won’s steep decline earlier this year as inconsistent with South Korea’s solid fundamentals, citing the later rebound to a two-year high of about 1,330 per dollar. He said the exchange rate is now aligning with the underlying economy and that the ministry will monitor global conditions for any shifts. Lee affirmed that one outlet currency move does not warrant changes to the upcoming budget’s corporate tax revenue estimates, which already incorporate both upside and downside scenarios for the semiconductor sector.

He highlighted a prospective currency swap with the United States as a robust safeguard for the foreign-exchange market, though not a response to liquidity constraints. Lee also addressed the stock market’s correction, attributing pressure to global rate hikes, AI and semiconductor investment concerns, and geopolitical risks, and indicated readiness to act if stabilization is needed. Finally, he outlined plans to diversify growth beyond semiconductors through SEED projects, the K-GX initiative, and a forthcoming sovereign wealth fund targeting strategic industries.