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South Korea Moves to Bolster FX Stability as Koo Presses Exporters and Plans Investor Incentives

A new bill would create an entity to manage the US$350 billion U.S. investment package tied to lower tariffs.

Overview

  • Koo Yun-cheol said the government is consulting market participants to curb exchange-rate instability.
  • He met Samsung, SK hynix and other exporters and urged cooperation on dollar supply after noting some firms are keeping earnings abroad.
  • The finance ministry plans a larger 2026 budget for exporter support and will ease rules to help diversify overseas markets.
  • Incentives for long-term small stock investors are being prepared, with timing and specifics yet to be announced.
  • The won traded near 1,464.8 per dollar on Wednesday, down 0.8% this week after gains following earlier stabilization pledges.