Overview
- The Finance Ministry, Bank of Korea, Health Ministry and the National Pension Service formed a consultative body that has begun meeting to align steps to steady the currency.
- Authorities are pressing exporters to convert dollar earnings, boosting incentives and disclosure requirements, and reviewing brokerage practices tied to overseas stock trading.
- BOK Governor Rhee Chang-yong attributed much of the recent weakness to heavy purchases of U.S. equities by Korean investors, a stance that has drawn criticism from market watchers.
- Koreans have net bought $31.6 billion in U.S. stocks this year as both retail and institutional flows expanded, while the won’s monthly average reached 1,414 per dollar through November and neared 1,480 late last month.
- Officials say they are not mobilizing the NPS, which holds about 1,322 trillion won in assets with roughly $530 billion overseas, as commentators warn that using the fund or raising hedge ratios could dent returns and its independence.