Acting President Choi Sang-mok called for close monitoring of financial markets Friday amid heightened uncertainties, while instructing measures to revamp regulations regarding foreign exchange flows, his office said.
Choi made the remarks during a meeting on macroeconomic and financial issues, which was attended by Bank of Korea Gov. Rhee Chang-yong, and the chiefs of the Financial Services Commission and the Financial Supervisory Service, according to the Ministry of Economy and Finance.
"Amid heightened external uncertainties, we need to swiftly devise additional measures to rationalize regulations regarding foreign currency flows in order to address imbalances of supply and demand in the foreign exchange market caused by domestic investors' growing investment in overseas securities and other issues," Choi said.
Choi's instruction came as the Korean currency has stayed well below 1,450 won against the U.S. dollar, a level that had not been seen in nearly 16 years.
In response to the won's weakness, local authorities announced a set of measures in December to loosen foreign exchange regulations and allow more corporate borrowings abroad with a goal to boost foreign exchange liquidity and the efficiency of FX management.
"Uncertainties remain high in the financial and foreign exchange markets due to the United State's new tariff policy and responses by major nations, as well as geopolitical issues. We should be vigilant and closely monitor global markets around the clock," Choi said. (Yonhap)
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