According to the Ministry of Finance on July 2, Deputy Minister Heo Chang conducted the second plenary meeting of the International Financial Policy Advisory Committee on July 1. The meeting addressed key topics, including the basic direction for the won internationalization roadmap and the extension of the foreign exchange market to 24 hours, along with the establishment of an offshore won payment system.
The ministry aims to create measures that will enable foreigners to freely exchange won in offshore markets. To achieve this, the 'Won Internationalization Roadmap' will be developed and announced this month, initiating a phased transition.
Initially, the government will enhance the infrastructure for won transactions and payments, as well as refine the institutional framework to facilitate foreign investors' access to the currency in offshore markets. Additionally, efforts will be made to increase the international usability of the won in current account transactions.
The foreign exchange market operation system will also undergo changes. Starting July 6, the foreign exchange market will operate 24 hours a day, and an offshore won payment system will be introduced in January of next year. Finally, the government plans to strengthen external safety nets in response to the evolving market environment.
Advisory committee members emphasized the need for consistent policy implementation from a medium- to long-term perspective to promote the internationalization of the won and the advancement of the foreign exchange market. They highlighted the importance of enhancing policy predictability and continuously improving communication with foreign investors. They also discussed the need to enhance external risk management strategies and shift the paradigm of foreign exchange policy.
The Ministry of Finance intends to consistently pursue innovation tasks in the foreign exchange and capital markets while regularly communicating with major global financial institutions to incorporate the demands of foreign investors into policy. Furthermore, the ministry plans to operate the International Financial Policy Advisory Committee to review and address new challenges and potential risks.
Deputy Minister Heo stated, "Recently, the foreign exchange market has experienced increased volatility due to heightened expectations of interest rate hikes by the U.S. Federal Reserve and continued net selling of stocks by foreign investors. The foreign exchange authorities are well-equipped to respond, and if the exchange rate deviates significantly from fundamentals, we will promptly implement necessary market stabilization measures."
* This article has been translated by AI.
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