On July 21, Second Vice Minister of Finance and Economy Huh Chang held a meeting with major Korean exporters – including Samsung Electronics, SK hynix, Hyundai Motor and Kia, HD Korea Shipbuilding & Offshore Engineering (HD KSOE), Hanwha Ocean, and Samsung Heavy Industries – at the Government Complex Seoul. During the meeting, participants reviewed recent developments in foreign exchange (FX) transactions and discussed public-private cooperation measures to help mitigate volatility in the FX market.
Vice Minister Huh noted that the supply-demand imbalance in the FX market has eased somewhat in recent weeks. He observed that the KRW/USD exchange rate, which had climbed to the KRW 1,550 level immediately prior to the government’s meeting with exporters in June, has declined rapidly to the upper KRW 1,400 range, supported by increased FX sales by exporters, forward sales by shipbuilders, and inflows associated with SK hynix’s ADR issuance. He also noted that dollar-buying by offshore investors, which had previously expanded amid expectations of continued weakness in the Korean won, has moderated somewhat.
Vice Minister Huh further emphasized that foreign currency supply and demand conditions are expected to improve further in the second half of the year, underpinned by Korea’s solid economic fundamentals, including continued strength in the semiconductor sector. (The government has revised up its forecast for Korea’s current account surplus in 2026 from USD 135 billion to USD 290 billion, well above the previous record high of USD 123.1 billion posted in 2025)
Vice Minister Huh highlighted that, despite persistent external uncertainties, including the ongoing conflict in the Middle East, the government remains firmly committed to swiftly anchoring market sentiment as they continue to stabilize and has ample policy tools available to maintain market stability. He also called on major exporters, in light of the changing FX market conditions, to play an active role by increasing the conversion of export proceeds and foreign currency deposits into Korean won and facilitating greater inflows of funds held overseas.
The participating companies shared the view that a stable FX market serves as the foundation for reducing uncertainty in the overall business environment and fostering a stable basis for investment and business operations. They also agreed to take a more proactive and responsible role in supporting the government’s efforts to stabilize FX supply and demand, so that the recent improvement in FX supply and demand can be firmly established as a sustained trend of stability in the FX market.
Please refer to the attached files.
