Koo Yun-cheol, Deputy Prime Minister and Minister of Economy and Finance, said the won-dollar exchange rate, which has fallen to the 1,460 won range (won strengthening), "should reach the level the market expects."
Meeting with reporters at the International Monetary Fund (IMF) headquarters in Washington, D.C. on Wednesday, Koo was asked whether the current rate in the 1,460 won range was satisfactory. "Given Korea's fundamentals, the market would have expectations," he said. "I hope it reaches that level." Asked whether he was not yet satisfied, Koo replied, "I don't know exactly what level (the market expects), but I think it would be good to reach the level the market has formed as its expectation. It would not be appropriate to discuss specific levels."
The won-dollar rate, which had surged well above 1,500 won per dollar amid the war between the United States and Iran, plunged Wednesday after Iran's foreign minister signaled that the Strait of Hormuz would be opened on a limited basis during the ceasefire. At 2 a.m. Korea time on Thursday, the rate closed at 1,460.00 won per dollar, down 14.60 won from the previous close in the Seoul foreign exchange market. In off-shore trading after the market close, the rate rose slightly to the mid-to-high 1,460 won range as reports emerged that Hormuz would be closed again.
Koo visited the United States to attend the Group of 20 (G20) finance ministers and central bank governors meeting held in Washington, D.C. He emphasized that he could feel the high level of interest in Korea from countries around the world at the meeting. "In the case of PIMCO (a global asset management firm), they flew from London to meet me and then hurriedly flew back, showing strong interest in our economy," Koo said. "I met with global investment firms including Apollo, BlackRock, PIMCO, and Carlyle, and they unanimously said, 'We don't understand why people aren't investing more in Korea. Korea offers tremendous investment opportunities.'"
Koo said the main agenda items at this meeting were growth and addressing imbalances, with considerable discussion on critical mineral supply chains. On these topics, he said, "I got the impression that there are very high expectations for Korea's role, and I actually played a significant role. I spoke at every session."
Koo was scheduled to hold a bilateral meeting with U.S. Treasury Secretary Scott Bessent later that afternoon. Asked whether he would discuss investment in the United States with Bessent, he said, "That would be an area of interest for Secretary Bessent. We also have our own issues, so I'll have to meet with him to find out."
Asked whether he planned to hold additional discussions with Bessent on the won-dollar exchange rate, Koo said, "I'll have to meet him first to find out. Since the rate has stabilized in the 1,460 won range per dollar, we could potentially discuss that as well if necessary."
Koo, who also attended a Group of Seven (G7) meeting on critical minerals, said, "We did not discuss a critical mineral price floor." He added, "There was a movement, centered on international organizations, to connect critical mineral supplier and consumer countries, and since Korea excels at smelting and refining in that process, we will highlight our strengths and pursue cooperation." The critical mineral price floor is being led by the United States, which is asking countries to participate in efforts to reduce dependence on China for critical minerals. However, the Korean government is taking a cautious approach to ensure stable supply and demand for its companies.
