Published：Jun 4, 00:32Last updated：Jun 16, 00:14

South Korea Acts to Stabilize Weakening Won

Jun. 4, 2026 00:32

Finance Minister Koo Yun-cheol pledged on June 4, 2026, to intervene in the foreign exchange market if volatility persists. The won hit a two-month low amid Middle East tensions and foreign investor sell-offs. Koo met with financial regulators to discuss stabilizing measures, emphasizing the economy's resilience despite external shocks.

Summarized

19News

5Media

Jun. 11, 2026 06:00

South Korea's finance ministry urged exporters to help stabilize the foreign exchange market by converting export earnings into won. The won has weakened against the dollar despite strong economic fundamentals, prompting concerns about its impact on businesses and households.

Jun. 16, 2026 00:14

South Korea and Indonesia are curbing derivatives trading to stabilize their currencies amid sharp depreciation caused by the Iran war. Authorities are avoiding excessive forex interventions to preserve foreign reserves. The measures target speculative trades that exacerbate volatility. The strategy aims to support currencies without depleting reserves, particularly in energy-importing Asian nations.

South Korea has announced a series of measures to stabilize its currency, the won, which has hit its lowest level since 2009. Finance Minister Koo Yun-cheol emphasized the government's commitment to addressing excessive volatility in the foreign exchange market, attributing the won's decline to external factors such as Middle East tensions and foreign investor sell-offs. The government has pledged to intervene if necessary and is closely monitoring speculative activities that could exacerbate market instability.

💼 Government Intervention

Finance Minister Koo Yun-cheol met with financial regulators, including the Bank of Korea and the Ministry of Economy and Finance, to discuss stabilizing measures. The government emphasized the economy's resilience despite external shocks and warned against speculative trading. Authorities have pledged to investigate and take stern action against market-disruptive activities to restore stability.Yonhap News Agency+2

📊 Economic Measures

The Bank of Korea is preparing a 10 trillion won fiscal stimulus to support uneven economic growth, targeting sectors like culture and the arts. Deputy Minister Moon Ji-sung met with financial firms to discuss market trends, and regulators plan to conduct on-site inspections to curb speculative trading. These measures aim to bolster economic stability and growth while addressing currency volatility.Bloomberg+2

🌍 International Context

South Korea's efforts mirror actions taken by other Asian nations, such as Indonesia and the Philippines, to stabilize their currencies amid global uncertainties. The government is cautious about excessive forex interventions to preserve foreign reserves, focusing instead on curbing speculative trades that exacerbate volatility. This strategy aims to support the won without depleting reserves, particularly in energy-importing nations.The Japan Times+1

🕒 Market Reforms

To enhance market accessibility and stability, South Korea plans to launch a 24-hour foreign exchange market on July 6. Second Vice Finance Minister Huh Chang highlighted the country's strong financial health and AI industry position. French investors praised South Korea's reforms, calling it a core market alongside the U.S. and Japan. These reforms aim to attract foreign investors and ensure long-term economic growth.Yonhap News Agency+1

Huh ChangMoon Ji-sungBank of KoreaKoo Yun-cheolMinistry of Economy and Finance