Deputy Minister for International Affairs at the Ministry of Finance and Economy Moon Ji Sung held Investor Relations (IR) sessions on the Korean economy for major global investors in London on July 20 and in Singapore on July 22, encouraging global financial institutions to expand their investment in and engagement with the Korean market.

[ 1. IR session on the Korean economy: Promoting Korea’s Economic Growth Strategy and Investment Attractiveness ]

The IR sessions were held in a roundtable format with a select group of key investors and brought together leading global asset managers – including BlackRock, the world’s largest asset manager, Amundi, and Schroders – as well as major sovereign wealth funds and global investment banks (IBs), including Goldman Sachs, HSBC, and J.P. Morgan.

During the sessions, Deputy Minister Moon highlighted Korea’s solid economic growth momentum and the government’s economic growth strategy for the second half of the year. In particular, he noted that Korea’s real gross domestic product (GDP) is projected to grow by 3.0 percent this year – the highest growth rate in five years – while nominal GDP is expected to increase by 12.3 percent, marking the strongest growth in nearly three decades. He emphasized that Korea’s economic growth continues to be underpinned by its emergence as the world’s fifth-largest exporter, a record-high current account surplus, and strong investment in semiconductor facilities and equipment.

He then introduced the government’s “3·4·5 Vision” outlined in its economic growth strategy for the second half of the year: boosting potential growth to 3 percent, advancing Korea to become the world’s fourth-largest exporter, and raising gross national income (GNI) per capita to USD 50,000. He also outlined the government’s key policy priorities for achieving these goals, including maintaining macroeconomic stability, strengthening supply chain resilience and energy security, expanding new growth engines, promoting balanced regional development, and advancing structural reforms.

During the Q&A session, investors showed strong interest in Korea’s favorable growth outlook, how the government plans to use the increased tax revenue resulting from the upturn in the semiconductor industry, the sustainability of the semiconductor upcycle, measures to ease stock market volatility, and the government’s won internalization plan.

Responding to a question on recent movements in the Korean won, Deputy Minister Moon said that recent changes in FX supply and demand – including increased spot and forward sales of foreign currency by exporters in the shipbuilding and semiconductor industries – are likely to prove more than temporary and could continue going forward. He added that the Korean won still remains undervalued relative to Korea’s economic fundamentals, suggesting there is further room for appreciation.

Regarding geopolitical uncertainties in the Middle East and the government’s policy response, Deputy Minister Moon said that, given Korea’s heavy dependence on energy imports, the government would strengthen supply chain resilience and energy security by expanding domestic production and strategic reserves of critical items, while also promoting investment in overseas production facilities and securing long-term supply contracts.

[ 2. IR Session on the FX Market: Presenting the Won Internationalization Roadmap and Consulting with Market Participants ]

Deputy Minister Moon held FX market IR sessions for London-based Registered Foreign Institution (RFI)^* and member firms of the Global Foreign Exchange Division (GFXD)^** of the Global Financial Markets Association (GFMA) in Singapore.

^* Registered Foreign Institution (RFI): A foreign financial institution registered to participate directly in Korea’s FX market.

^** Global Foreign Exchange Division(GFXD): An industry forum on the FX market under the GFMA, comprising major global banks.

During the sessions, Deputy Minister Moon provided a detailed overview of the Korean government’s ongoing FX market reforms, including improvements to the RFI framework. He also elaborated on the recently announced Won Internationalization Roadmap, which aims to develop the Korean won into a currency that can be more freely held, traded, and obtained outside Korea.

Participants agreed on the need for and direction of won internationalization and expressed support for the government’s plans. They also showed strong interest in how the offshore won settlement system would operate and how won liquidity would be provided during overnight trading hours.

Deputy Minister Moon explained that the government will build the necessary infrastructure to enable foreign investors to conveniently trade, hold, and settle Korean won through their existing banking relationships overseas. He added that the government will pursue institutional reforms to foster private sector-led liquidity provision and broaden market participation.

[ 3. Global Key Investor Consultative Group: Establishing a Standing Platform for Investor Dialogue and Feedback]

Last but not least, Deputy Minister Moon announced plans to officially launch the Global Key Investor Consultative Group, bringing together global investors and relevant domestic institutions, following the IR sessions on the Korean economy and other outreach efforts. The consultative group will serve as a standing platform for dialogue and feedback, through which the government will directly brief overseas investors on reforms to the FX and capital markets and review and address issues raised during the investment process.

Deputy Minister Moon said that the government would continue to regularly engage with overseas investors and listen closely to the challenges they face in their day-to-day transactions. He added that

the government would carefully review the feedback received during the visit in consultation with the relevant authorities, while working to establish a sustained two-way communication framework

with investors.

Please refer to the attached files.