Gu Yoon-cheol, the Deputy Prime Minister and Minister of Finance and Economy, attended a market situation check meeting at the Bank Federation in Jung-gu, Seoul, on the morning of the 14th. From the left are Lee Chan-jin, the head of the Financial Supervisory Service; Gu Yoon-cheol, the Deputy Prime Minister; Shin Hyun-song, the Governor of the Bank of Korea; and Lee Ok-won, the Chairman of the Financial Services Commission. / Provided by the Ministry of Finance and Economy.
The government on the 14th expressed concerns that should a strike by Samsung Electronics become a reality, it could pose significant risks to growth, exports, and the financial market overall. They emphasized that a strike should not occur and that issues need to be resolved promptly through principled negotiations between labor and management.
On this day, the government held a “Market Situation Check Meeting” presided over by Deputy Prime Minister and Minister of Finance and Economy, Gu Yoon-cheol. The meeting was held ahead of the U.S.-China summit and was attended by Shin Hyun-song, the Governor of the Bank of Korea; Lee Ok-won, the Chairman of the Financial Services Commission; and Lee Chan-jin, the head of the Financial Supervisory Service. The attendees reviewed recent trends in the financial and foreign exchange markets and discussed directions for response.
The attendees reached a consensus regarding the recent Won-Dollar exchange rate, stating that “volatility is excessively expanding compared to the basic strength (fundamentals) of our economy.” The exchange rate rose from the 1,430 Won range at the end of February to the 1,490 Won range the previous day. They analyzed that the exchange rate increase is due to persistent risk factors such as the Middle East conflict, the rise in international oil prices, and the interest rate directions of major countries, along with recent foreign investors selling stocks and an increase in offshore speculative transactions.
However, the attendees predicted that “the foreign exchange market will stabilize once external instability factors like the Middle East conflict are resolved, thanks to the largest-ever current account surplus.”