Korean won's earlier slide 'out of line' with fundamentals: finance minister
BANGKOK — The Korean won's sharp decline against the U.S. dollar earlier this year was "out of line" with the country's strong economic fundamentals, the finance minister has said. Finance Minister Lee Hyoung-il made the assessment during a meeting with reporters in Bangkok on Friday, after the won recently strengthened to a two-year high against the U.S. dollar at 1,330-won levels, compared with…
Bangkok — Finance Minister Lee Hyoung-il has stated that the rapid depreciation of the Korean won against the U.S. dollar earlier this year was not consistent with the nation's robust economic fundamentals. In a press briefing in Bangkok on Friday, Lee pointed out that the won had since recovered to a two-year high against the U.S. dollar at 1,330-won, a significant contrast to the rate of around 1,550-won observed in July.
Lee explained that the July levels were inconsistent with the country's economic fundamentals, indicating that the currency exchange rate was adjusting to align with Korea's economic realities. The finance minister pledged to keep a close eye on the situation, acknowledging that external conditions could potentially change.
When queried about whether fluctuations in the exchange rate might impact the revenue projections for next year's budget, Lee affirmed that these movements do not necessitate a revision of current forecasts at present. According to Lee, corporate tax revenue estimates already factor in a significant proportion of the performance of chipmakers, with both optimistic and pessimistic factors taken into account. The minister appeared confident that the current forecast remains accurate for now.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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