Lee says authorities expect won to strengthen to around 1,400 level in 1 or 2 months

In a significant announcement that offers a glimmer of hope amidst ongoing economic concerns, President Lee Jae Myung stated on Wednesday that financial authorities anticipate the Korean won to strengthen to approximately the 1,400 level within the next one to two months. This comes alongside a firm commitment from the administration to implement measures aimed at stabilizing the foreign exchange market.

President Lee’s remarks were made during a New Year’s press conference, a crucial platform where he addressed the nation’s economic landscape. The prolonged weakness of the Korean currency has been a growing source of strain on the economy, prompting widespread apprehension among businesses and citizens alike.

Addressing the notion that the persistently weak won might be perceived as a ‘new normal,’ President Lee clarified that this trend is not isolated to Korea. He emphasized that its global nature makes it particularly challenging to reverse through domestic policy measures alone. This broader perspective suggests that while internal strategies are vital, the government acknowledges the influence of international economic dynamics.

Despite these external factors, President Lee assured the public of the government’s unwavering dedication. “(The government) will continue to identify available policy tools and make efforts to stabilize the foreign exchange rate,” he stated. He further added that the administration is already actively implementing a range of effective policy measures within its capacity, signaling a proactive approach to mitigate the currency’s volatility and its impact on the economy.

This announcement provides a potential timeline for market correction and reinforces the government’s resolve to navigate the current economic headwinds, aiming for greater stability in the foreign exchange market in the near future.