对此，韩国财政部外汇市场部主任Hee Jae Kim在接受采访时表示：“外汇储备的数量是足够的，基金的资产规模也足以应对外汇市场。”他补充称：“基金规模的削减并不一定意味着其对外汇市场的反应能力会下降。”The scale of South Korea's Forex Stabilization Fund will be cut by over 30% next year, a record reduction. However, the South Korean government has stated that the reduced size of the fund will still be sufficient to defend the Korean Won.
According to reports, the scale of South Korea's Forex Stabilization Fund will be cut by over 30% next year, a record reduction. However, the South Korean government has stated that the reduced size of the fund will still be sufficient to defend the Korean Won.
It is reported that the South Korean government plans to reduce the scale of the Forex Stabilization Fund from this year's 205.1 trillion won to 140.3 trillion won by 2025, marking the largest reduction in size since the fund was established in 1967 to address excessive fluctuations in the Korean Won.
In response, Hee Jae Kim, Director of the Foreign Exchange Market Department of the South Korean Ministry of Finance, stated in an interview: "The amount of foreign exchange reserves is sufficient, and the assets of the fund are also sufficient to deal with the foreign exchange market." He added: "The reduction in the size of the fund does not necessarily mean that its ability to respond to the foreign exchange market will decrease."
Min Gyeong-won, an economist at Seoul-based Yuanta Bank, said: "The impact of reducing the scale of the Forex Stabilization Fund will be minimal, as foreign exchange reserves are currently more than three times Korea's short-term external debt." "If the Korean Won depreciates, companies will sell US dollars in their foreign exchange deposits. If the Korean Won appreciates, individual investors will have an increased demand for US dollars for overseas stock investments."
Data shows that as of the end of August, the exchange rate of the Korean Won against the US dollar has fallen by 3.7% year-to-date, making it the second worst-performing currency in Asia. The fluctuation of the Korean Won this year has unsettled Korean authorities. In April of this year, the International Financial Bureau of the South Korean Ministry of Finance and the International Bureau of the Bank of Korea jointly issued a statement stating that they were closely monitoring exchange rate trends. Earlier, the exchange rate of the Korean Won against the US dollar fell to 1,400 won per US dollar, the lowest level since 2022.
Since July, the South Korean government has extended the trading hours of the Korean Won. This is part of the South Korean authorities' efforts to have their stocks and bonds included in more global indices. However, this may also lead to greater volatility of the Korean Won during periods of low liquidity.