Democratic Party Holds Foreign Exchange Risk Response Forum... "Trump Will Take Measures Beyond Imagination"

Criticism of Yoon's Emergency Martial Law...
"Will Become a Trauma for Everyone"
Emphasis on the Need for Foreign Exchange System Reform

A forum was held at the National Assembly to discuss measures to respond to foreign exchange risks that may arise after the inauguration of Donald Trump as the President of the United States. Members of the National Assembly and experts attending the forum raised their voices, emphasizing the need to resolve political instability and reform the foreign exchange market.

The won/dollar exchange rate recently surged close to 1,500 won, pushing the average exchange rate for the fourth quarter (October to December) to the highest level since the financial crisis. Yonhap News

On the 17th, Ando Geol, a member of the Democratic Party, held a forum titled "Directions for Responding to Foreign Exchange Risks and Reforming the Foreign Exchange System in the Era of High Exchange Rates and High Tariffs" at the National Assembly Members' Office Building in Yeouido, Seoul. The forum was attended by Democratic Party members Kim Taenyeon, O Gi-hyeong, Kim Youngjin, Kim Younghwan, and Lim Gwanghyun, as well as Cha Gyugeun from the Innovation Party, Emeritus Professor Lim Hyukbaek of Korea University, and Lee Seungho, senior research fellow at the Capital Market Research Institute, who presented the keynote speech.

Participants in the forum pointed out that political instability, such as the December 3 emergency martial law incident, is shaking the foreign exchange market. Professor Lim said, "The December 3 emergency martial law incident has become a trauma for all of us and will be a constricting obstacle," adding, "The younger generation suffering from polarization is making efforts, but the older generation, especially the incumbent president, is destroying the dreams of the younger generation. It is lamentable."

Concerns were also raised about the high tariff policies of the second Trump administration. Member Kim Taenyeon said, "There are talks that measures beyond imagination by the second Trump administration in the U.S. will proceed at an unimaginable speed," adding, "It is extremely difficult to predict how much burden this will place on the economy." He continued, "At a time when we must respond with all our might, the national response capability has weakened due to the December 3 emergency martial law incident," emphasizing, "Following last year, growth is expected to remain in the 1% range this year as well, making the role of finance important."

Forum participants unanimously agreed that reforming the foreign exchange system is an urgent task. Member Ando said, "The capability of the National Pension Service plays a significant role in stabilizing the foreign exchange market. This is very meaningful," adding, "The stabilization of the foreign exchange market depends on how the capabilities of diversified economic agents are utilized. Therefore, improvement of the foreign exchange market is necessary." Senior Research Fellow Lee said, "To respond to population aging and a low-growth phase, it is necessary to secure economic growth engines through overseas income generation, but the current foreign exchange system does not contribute to this," adding, "The foreign exchange system must be reformed so that crisis response is not neglected."

This content was produced with the assistance of AI translation services.