Overview
- Major lenders are promoting conversions from dollars to won and cutting interest rates on foreign‑currency deposits to reduce incentives for dollar holdings.
- The Financial Supervisory Service plans to meet leading banks on Monday to urge restraint in marketing dollar‑linked products and to reinforce FX market stability efforts.
- The Bank of Korea will temporarily pay interest on foreign‑currency required reserves to bolster onshore dollar liquidity.
- Regulators are reviewing the surge in dollar‑denominated insurance sales and may conduct inspections as consumer complaints increase.
- The won traded around 1,473.6 per dollar on Friday as analysts renewed calls for stronger action and possible international coordination, citing the IMF’s finding that currency‑exposed dollar assets are about 25 times monthly FX turnover.