Bank of Korea Governor Lee Chang-yong said that the recent weakening of the Korean won does not reflect the true strength of the South Korean economy, and has vowed to oppose any investment decisions in the US that may threaten the stability of the foreign exchange market. In his New Year address delivered on Friday, Lee Chang-yong said that although it is difficult to define an accurate and appropriate exchange rate level, recent exchange rate performance seems to be seriously inconsistent with the fundamentals of the South Korean economy. Previously, the exchange rate of the won against the US dollar was approaching an important psychological threshold of 1,500 won. Last week, the authorities introduced a series of measures to boost the won. The won has always been under pressure from capital outflows, and the market is increasingly worried. As part of the tariff negotiations, increasing investment in the US may put more pressure on the Korean won exchange rate. Lee Chang-yong stressed that the 20 billion US dollar figure mentioned in the US-South Korea trade agreement is an annual upper limit, and said that no investment decision can disrupt the stability of the foreign exchange market. He said that the central bank, together with the government, will not support investment decisions that may damage the stability of the foreign exchange market. Lee Chang-yong added that South Korea's inflation rate is likely to remain relatively stable in 2026, but he warned that if the won continues to depreciate, upward pressure on inflation may increase.

Bank of Korea Governor Lee Chang-yong said that the recent weakening of the Korean won does not reflect the true strength of the South Korean economy, and has vowed to oppose any investment decisions in the US that may threaten the stability of the foreign exchange market. In his New Year address delivered on Friday, Lee Chang-yong said that although it is difficult to define an accurate and appropriate exchange rate level, recent exchange rate performance seems to be seriously inconsistent with the fundamentals of the South Korean economy. Previously, the exchange rate of the won against the US dollar was approaching an important psychological threshold of 1,500 won. Last week, the authorities introduced a series of measures to boost the won. The won has always been under pressure from capital outflows, and the market is increasingly worried. As part of the tariff negotiations, increasing investment in the US may put more pressure on the Korean won exchange rate. Lee Chang-yong stressed that the 20 billion US dollar figure mentioned in the US-South Korea trade agreement is an annual upper limit, and said that no investment decision can disrupt the stability of the foreign exchange market. He said that the central bank, together with the government, will not support investment decisions that may damage the stability of the foreign exchange market. Lee Chang-yong added that South Korea's inflation rate is likely to remain relatively stable in 2026, but he warned that if the won continues to depreciate, upward pressure on inflation may increase.