The South Korean government has engaged in discussions with major exporters, including Samsung Electronics and Hyundai Motor, regarding the early conversion of export payments and increasing the inflow of overseas retained earnings into the domestic market amid rising exchange rate volatility.
On June 11, the Ministry of Economy and Finance and the Ministry of Trade, Industry and Energy held a meeting at the Government Seoul Office with key exporters such as Samsung Electronics, SK Hynix, Hyundai and Kia, HD Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries, and Hanwha Ocean to discuss recent foreign exchange transaction trends and measures for stabilizing the forex market.
Deputy Minister of Economy and Finance Heo Chang noted that recent geopolitical risks in the Middle East and adjustments in foreign investor proportions due to a favorable domestic stock market have contributed to increased volatility in the foreign exchange market. However, he assessed that the external soundness of the South Korean economy remains robust, considering the record-high current account surplus and ample foreign currency liquidity.
He cautioned, "Despite the solid performance of the real economy, prolonged high exchange rates could increase burdens on businesses and households, potentially hindering domestic recovery and impacting the livelihood economy." He urged exporters to play a role in improving forex supply and reducing volatility, and discussed measures for immediate conversion of export payments and enhancing the inflow of overseas retained earnings.
Deputy Minister of Trade, Industry and Energy Moon Shin-hak emphasized the importance of proactive cooperation from companies to minimize the negative impacts of high exchange rates on exports and the economy. He added that the government will make every effort to stabilize the foreign exchange market while enhancing support for companies facing difficulties due to rising raw material prices linked to high exchange rates, including expanding import insurance and preferential loan guarantees.
Attending companies expressed that excessive exchange rate volatility is increasing the burden of managing foreign exchange risks and creating management uncertainties, and they pledged to actively cooperate with the government's efforts to stabilize forex supply.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.