{
  "id": 15531198,
  "title": "Korean won's earlier slide 'out of line' with fundamentals: finance minister",
  "url": "https://urgent.news/2026/10/19/korean-wons-earlier-slide-out-of-line-with-fundamentals-finance",
  "topic": "world",
  "section": "World",
  "published": "2026-10-19T01:00:06.000Z",
  "source": {
    "name": "Yonhap News",
    "slug": "yonhap-news",
    "url": "https://en.yna.co.kr/view/AEN20261018001400320"
  },
  "original_language": "en",
  "account": "Bangkok, Oct. 19 (Yonhap) -- Finance Minister Lee Hyoung-il contended that the Korean won's pronounced drop against the U.S. dollar earlier this year deviated from the nation's robust economic metrics, as reported by Yonhap. Speaking to journalists in Bangkok on Friday, Lee observed that the won recently rebounded to a two-year peak against the U.S. dollar at 1,330-won, up from around 1,550-won in July. The finance minister attributed this exchange rate movement back in line with South Korea's economic fundamentals. He further affirmed that ongoing monitoring of the situation is mandatory, given the potential for external conditions to evolve. Lee underscored that exchange rate fluctuations do not necessitate a revision to the forecast for next year's budgetary projections, as the corporate tax revenue estimates already account for significant variables, including chipmakers' performance. Nonetheless, the finance minister affirmed that the current circumstances do not warrant an adjustment to the tax revenue forecast. He also posited that a currency swap arrangement between South Korea and the United States could function as a \"robust safety net\" for Seoul's foreign exchange market. Lee clarified that this arrangement would be meaningful and necessary in this context, but not indicative of South Korea's immediate need for a swap arrangement due to foreign currency liquidity concerns. Turning to the South Korean stock market, whose main index recently contracted to the 5,000 range after breaking the 9,000 mark in June, Lee affirmed that the country's economic fundamentals remain robust. He noted that the market's recent downturn is attributed to apprehensions over more frequent-than-anticipated global interest rate hikes, uncertainties surrounding the sustainability of returns on AI and semiconductor investments, and geopolitical risks, such as those stemming from Middle Eastern conflicts. The semiconductor sector, pivotal to the South Korean market, has been particularly impacted by these concerns. Lee stated that the government is vigilant in monitoring the market and prepared to enact stabilization measures when deemed necessary, contingent on prevailing market conditions. He refrained from disclosing specific measures, arguing that divulging such information prematurely could undermine their efficacy. Lee also emphasized the importance of bolstering the competitiveness of the South Korean stock market and identifying novel growth catalysts beyond semiconductors. The minister cited the seven SEED projects, the K-GX initiative, and the services sector as key areas for fostering new growth engines. SEED pertains to Strategic Emerging Engines for Disruptive Innovation and encompasses domains like small modular reactors (SMRs), nuclear fusion, and renewable energy. K-GX denotes the Korea Green Transformation initiative, which seeks to uncover new business prospects while simultaneously tackling climate change. Lee disclosed that the finance ministry has engaged with partners boasting expertise in operating sovereign wealth funds, including Saudi Arabia and Singapore. Earlier this year, South Korea announced its intention to inaugurate a new sovereign wealth fund next year, slated to amass at least 20 trillion won (~US$14.9 billion) through a new account under the Korea Investment Corp. The partners expressed their welcome towards South Korea's sovereign wealth fund venture, with the minister noting that this move would generate opportunities for joint investments. However, he clarified that no formal arrangements for regular meetings or a separate dialogue channel have been discussed, as the fund has not yet materialized. Regarding the proposed tax on cryptocurrency, slated to commence next year, Lee indicated that his ministry is soliciting feedback amidst criticisms of the legislation, without providing further details.",
  "summary": "BANGKOK, Oct. 19 (Yonhap) -- The Korean won's sharp decline against the U.S. dol...",
  "key_points": [
    "Korean won's sharp drop against USD contradicts strong economic indicators",
    "Finance Minister Lee Hyoung-il attributes exchange rate to fundamentals, not fundamentals",
    "Currency swap with US could act as safety net, but not immediate need"
  ],
  "editors_take": "The recent stabilization of the won suggests that currency volatility is decoupling from underlying economic strength, allowing the government to maintain existing budgetary projections despite global market uncertainties.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Korea Times",
        "title": "Korean won's earlier slide 'out of line' with fundamentals: finance minister",
        "url": "https://urgent.news/2026/10/19/korean-wons-earlier-slide-out-of-line-with-fundamentals-finance-15531286",
        "published": "2026-10-19T01:17:03.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}