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 Korean won's rapid decline against the U.S. dollar earlier this year was not aligned with the nation's robust economic fundamentals. During a press briefing in Bangkok on Friday, Lee commented on the won's recent strengthening to a two-year high against the dollar at 1,330-won, a significant shift from around 1,550 won in July. He noted that this recent level was inconsistent with the country's strong economic fundamentals.
Lee further explained that he believed the exchange rate was reverting to a more appropriate level corresponding with Korea's economic health. He emphasized the need for continuous monitoring of the situation, as external factors could potentially change the dynamics. When queried about the potential impact of exchange rate fluctuations on projected revenue for the upcoming budget, Lee affirmed that such movements do not necessitate a revision of the current forecasts at this point.
The finance minister's corporate tax revenue estimates have already factored in a wide range of possibilities, including performance indicators for the semiconductor industry. He concluded that, considering both optimistic and pessimistic scenarios, there is no indication that a budgetary revision is imminent.
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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