Koo Yoonchul on Won Weakness: "Stabilizing Middle East Is Important...Verbal Intervention If Needed"

Yoon Chul Koo, Deputy Prime Minister and Minister of Finance and Economy

Koo Yoonchul, Deputy Prime Minister and Minister of Finance and Economy, commented on March 14 regarding the recent sharp decline in the value of the won, stating, "While stabilizing the situation in the Middle East is important, if necessary, we are prepared to make verbal interventions."

During his visit to Japan, Deputy Prime Minister Koo met with reporters in Tokyo after holding a meeting with Japanese Finance Minister Satsuki Katayama, and said, "The dollar is strong, while the euro, yen, and won are depreciating," explaining the current situation.

He added, "In this meeting, the two countries discussed closely monitoring the foreign exchange markets and taking appropriate measures against disorderly movements. If necessary, we agreed that both countries would respond jointly."

In a statement released after the meeting, the two countries expressed "serious concern over the sharp depreciation of the won and the yen."

Regarding the Korea-Japan currency swap agreement, which expires in November, Deputy Prime Minister Koo said that, given the current high volatility in financial markets, it is not the right time to discuss specifics. However, he also stated, "We will discuss the scale and other details with Japan moving forward, and the Japanese side also expressed willingness to actively engage in discussions." Korea and Japan signed a currency swap agreement worth 10 billion dollars on December 1, 2023, which was set for a term of three years.

Additionally, Deputy Prime Minister Koo noted that Japan's dependence on China for rare earths is lower than Korea's, and stated that the two countries agreed to share information on supply chain diversification and to closely cooperate. He explained, "Japan mines rare earths in Australia and refines them in Malaysia, and is also interested in rare earth recycling." He further mentioned that, for permanent magnets, Japan is developing methods that do not use heavy rare earths.

On the topic of Korea-Japan artificial intelligence (AI) cooperation, Koo said, "Korea excels in memory technology, while Japan is strong in robot joints." He continued, "I persuaded the Japanese side that in order to gain an advantage in the global market, Korea, the United States, and Japan should collaborate in their respective areas of expertise."

Referring to the Korea Economic Investment Forum held in Tokyo the previous day, Deputy Prime Minister Koo emphasized, "Now is the best time to invest in Korea." He added, "Even if we improve our systems, it is meaningless if partners are not aware. We will continue to proactively promote the appeal of the Korean market."

Furthermore, Deputy Prime Minister Koo stated, "We are planning to hold a Korea-Japan Finance Ministers' Meeting in Korea within a year," and shared that there was consensus on the importance of communication between the financial authorities of the two countries.

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