Choo Kyung-ho on the 'Legoland Incident' Kim Jin-tae: "Should Have Been a Bit More Serious"

"No Excessive Exchange Rate Defense... Response to Temporary Supply-Demand Instability"

Deputy Prime Minister for Economy Choo Kyung-ho is attending the plenary session of the Budget and Accounts Committee held at the National Assembly on the 10th, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Oh Ju-yeon] Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho commented on Gangwon Governor Kim Jin-tae's declaration of default on the Legoland Asset-Backed Commercial Paper (ABCP), saying, "I regret that he should have judged the market's sensitivity a bit more prudently."

On the 10th, Deputy Prime Minister Choo said at the National Assembly Budget and Accounts Special Committee plenary session, "Since there is an evaluation from the market and society, I believe Governor Kim Jin-tae is making his judgment accordingly."

Regarding the current tightening of the financial market, he explained, "I cannot say that Legoland has no impact," but added, "The market does not move due to a single factor; rather, many domestic and international variables are acting in a complex manner."

In response to questions about recent sharp fluctuations in the exchange rate, he replied, "We are not forcibly defending the exchange rate."

He said, "The exchange rate is always determined by the market. However, we respond when there is a sudden concentration or a temporary occurrence of extreme supply and demand instability."

Regarding the issue of concluding a Korea-US currency swap agreement, he stated, "We are closely monitoring the foreign exchange market with the United States, and if necessary, we have a cooperative system in place to activate liquidity supply mechanisms."

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