Former Bank of Korea Governor: The Korean won is already resilient; authorities can smooth fluctuations but cannot determine the trend
智通财经2026/09/09 04:01- Former Bank of Korea Governor Lee Chang-yong stated that South Korea does not need to be overly concerned about short-term fluctuations of the Korean won, as the economy has undergone structural changes—South Korea has shifted from being an international net debtor to a creditor nation, so there is no need to panic when the exchange rate reaches a certain level.
- He suggested that South Korean authorities need to take a different approach: as a small economy, policymakers should remain humble; based on his experience, fluctuations can be smoothed, but it is not possible to change the direction of the exchange rate—only fundamental policy reforms can achieve this.
- He declined to comment on the interest rate path, but noted that policymakers may focus on key factors such as the development of the US-Iran war, the government's expansionary fiscal policy, and the US midterm elections. He also warned that even if the semiconductor cycle continues, a worsening of US-South Korea trade tensions could still have negative impacts, and the effects on inflation will also differ.
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