South Korea's top economic policy makers vowed on Monday to work to stabilize the foreign exchange market because the recent weakening of the Korean won deviates from economic fundamentals. “We will keep a close eye on the financial and foreign exchange markets and work to resolve the structural imbalance between supply and demand in the foreign exchange market,” said Korea's Minister of Planning and Finance, Koo Yun-chul, in a speech prepared for the New Year's event. The won fell 0.3% against the US dollar to 1,448.6 won on Monday, falling for the fourth consecutive trading day. Ku Yun-cheol also said that the government will provide tax benefits for long-term investment in domestic stocks. At this event for the financial community, Bank of Korea President Lee Chang-yong said that the central bank, government, and relevant agencies must cooperate to deal with the recent trend of depreciation of the won not in line with economic fundamentals. Looking ahead, Lee Chang-yong said that since there will be greater trade-offs between considering economic growth, inflation, and financial stability, monetary policy will operate more carefully and meticulously.

South Korea's top economic policy makers vowed on Monday to work to stabilize the foreign exchange market because the recent weakening of the Korean won deviates from economic fundamentals. “We will keep a close eye on the financial and foreign exchange markets and work to resolve the structural imbalance between supply and demand in the foreign exchange market,” said Korea's Minister of Planning and Finance, Koo Yun-chul, in a speech prepared for the New Year's event. The won fell 0.3% against the US dollar to 1,448.6 won on Monday, falling for the fourth consecutive trading day. Ku Yun-cheol also said that the government will provide tax benefits for long-term investment in domestic stocks. At this event for the financial community, Bank of Korea President Lee Chang-yong said that the central bank, government, and relevant agencies must cooperate to deal with the recent trend of depreciation of the won not in line with economic fundamentals. Looking ahead, Lee Chang-yong said that since there will be greater trade-offs between considering economic growth, inflation, and financial stability, monetary policy will operate more carefully and meticulously.