South Korea's Ministry of Economy and Finance held a foreign exchange market roundtable with major global investment banks and domestic commercial banks to take stock of FX and international financial market conditions amid heightened uncertainty linked to the Middle East war. The ministry signalled it is on high alert and will pursue bold market-stabilisation measures if won volatility becomes excessive and diverges from economic fundamentals, while also stepping up whole-of-government action against fake news that could fuel market disorder. Market participants assessed that the won–US dollar exchange rate, which had been trending lower in February 2026, saw volatility widen as the Middle East conflict lifted global financial market uncertainty. They nevertheless aligned on the view that South Korea’s fundamentals, external soundness and foreign-currency liquidity remain strong, and that volatility should ease quickly if conditions stabilise. The ministry also pointed to factors it expects to improve FX supply-demand conditions, including the launch of a domestic market return account (RIA), increased dividends from overseas affiliates, the start of Korean government bond inclusion in the World Government Bond Index, and a National Pension Service “new framework” announcement expected in April, alongside improvements in the trade balance and the bedding-in of three tax laws aimed at exchange-rate stability.
Ministry of Economy & Finance (South Korea) 2026-04-07
South Korea's Ministry of Economy and Finance convenes a foreign exchange market roundtable and warns it will act against excessive won volatility
South Korea’s Ministry of Economy and Finance convened a foreign exchange market roundtable with major global and domestic banks to review FX and international market conditions amid heightened Middle East–related uncertainty. The ministry said it is on high alert and ready to deploy bold stabilisation measures if won volatility becomes excessive, while intensifying efforts against market-disrupting fake news. Participants viewed South Korea’s fundamentals and external soundness as strong and cited supportive FX factors, including a domestic market return account, higher overseas dividends, Korean government bond inclusion in the World Government Bond Index, a forthcoming National Pension Service framework, an improving trade balance and recent tax changes.