Koo Yoonchul, Park Honggeun, and Lee Okwon Launch Three-Party Consultative Body: "Excessive Won Weakness Does Not Benefit the Economy"

First Joint Meeting of Macroeconomic Authorities After Organizational Separation

On the morning of the 1st, at the Government Seoul Building in Jongno-gu, Seoul, Park Hong-geun, Minister of Planning and Budget (from the left in the photo), Koo Yoon-cheol, Deputy Prime Minister and Minister of Economy and Finance, and Lee Ok-won, Chairman of the Financial Services Commission, posed for a commemorative photo at the "Macroeconomic Fiscal and Financial Meeting." Ministry of Planning and Budget

Koo Yoon-cheol, Deputy Prime Minister and Minister of Economy and Finance, commented on April 1 that the won-dollar exchange rate had surpassed the 1,500 won mark due to the Middle East war, stating, "An excessive weakening of the won, which is disconnected from economic fundamentals, does not benefit our economy."

On the morning of the same day at the Government Seoul Building, Deputy Prime Minister Koo presided over the first Macroeconomic Fiscal and Financial Meeting, attended by Park Hong-geun, Minister of Planning and Budget, and Lee Ok-won, Chairman of the Financial Services Commission. He said, "The prolonged uncertainty in the Middle East, which has continued for over a month, is affecting both the real economy and the financial markets."

On this day, the won-dollar exchange rate opened at 1,508.5 won in the Seoul foreign exchange market, down 21.6 won from the previous day. The previous day, the exchange rate had briefly surged past 1,530 won, reaching its highest level since the 2009 global financial crisis.

However, Deputy Prime Minister Koo noted, "Exports have reached record highs so far this year, and from today, Korean Treasury bonds will be included in the World Government Bond Index (WGBI). With the passage of the three tax bills for exchange rate stabilization in the National Assembly yesterday, the repatriation of funds from overseas securities investments through the Reshoring Investment Account (RIA) is expected to accelerate, and if dividends from overseas subsidiaries increase, this will help stabilize the exchange rate."

He also emphasized, "Continued conflict in the Middle East could harm vulnerable groups, so it is crucial that the supplementary budget bill submitted to the National Assembly yesterday is passed and executed swiftly."

He added, "Fortunately, as the supplementary budget schedule was quickly agreed upon by both parties, all ministries will actively participate in the review process at the National Assembly. We will make thorough preparations so that, once the supplementary budget is finalized, it can be implemented immediately in the field."

This day marked the official launch of the first consultative body among the heads of macroeconomic authorities, including the Ministry of Economy and Finance, the Ministry of Planning and Budget, and the Financial Services Commission, which were separated at the beginning of the year. The plan is to establish a close cooperative system across macroeconomic policies, including taxation, fiscal policy, and finance.

Deputy Prime Minister Koo stated, "We will remain fully prepared for the possibility that the Middle East conflict could become even more prolonged. We will be ready to respond immediately by proactively preparing all available policy tools, keeping even the worst-case scenarios in mind."

He continued, "Going forward, our three ministries, as a 'one team' overseeing macroeconomic policy tools, will meet regularly every month or as needed to pool our wisdom. We will discuss not only pressing issues such as the Middle East conflict, but also delve deeply into structural problems such as polarization and the decline in potential growth rate."

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