President Lee Jae-myung said the South Korean exchange rate reaching the mid-1,500 won range [1] is high but only temporary.
The president's diagnosis comes as the government seeks to manage public perception and approval ratings amid currency volatility that impacts national trade and economic stability.
During an interview with a journalist, Lee addressed the specific movement of the currency. When asked by Edaily reporter Kim Yoon-sung for a diagnosis of the current situation, Lee acknowledged the peak. "The exchange rate has gone to the mid-1,500 won range. It is a fact that it is high," Lee said [1].
Lee attributed the current valuation to supply-side factors rather than systemic failure. Specifically, he pointed to an unprecedented current-account surplus as a primary driver of the current exchange-rate environment [1]. He said that he views the current high rate as a temporary phenomenon [1].
The administration intends to continue monitoring the situation to determine if further policy interventions are required. The government's approach focuses on identifying whether these supply factors will persist or if the currency will naturally correct as the surplus stabilizes [1].
Market analysts often track these figures closely because the won's value affects the cost of imports and the competitiveness of South Korean exports. By framing the rise as a result of a surplus, the administration suggests that the currency weakness is tied to specific economic anomalies rather than a lack of confidence in the national economy [1].
“"The exchange rate has gone to the mid-1,500 won range. It is a fact that it is high."”
By attributing the exchange rate to a current-account surplus, the South Korean government is attempting to signal that the currency's volatility is a byproduct of economic activity rather than a sign of instability. This framing helps the administration avoid committing to aggressive market interventions while maintaining that the situation is under control.
