'Don't make small profits from weak won': Senior presidential aide urges top CFOs to cooperate on forex policy
Published: 19 Dec. 2025, 16:06
Updated: 22 Dec. 2025, 17:52
Audio report: written by reporters, read by AI
![Kim Yong-beom, presidential director of national policy, speaks during a meeting in Gwangju on Dec. 17. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/12/22/9a0d9244-eee1-4119-9ae6-0a14a7e7846d.jpg)
Kim Yong-beom, presidential director of national policy, speaks during a meeting in Gwangju on Dec. 17. [YONHAP]
Amid heightened concerns over the weak Korean won — which hovers around 1,480 won to the dollar — Kim Yong-beom, presidential director of national policy, summoned chief financial officers (CFOs) from the country’s top seven exporters on Thursday and urged their cooperation.
“Don't try to make small profits from the weak won,” Kim told the companies.
The meeting, dubbed the “Exporters’ Foreign Exchange Market Meeting,” took place at the Korea Federation of Banks headquarters in Jung District, central Seoul.
CFOs from Samsung Electronics, SK, Hyundai Motor, LG, Lotte, Hanwha Ocean and HD Hyundai Heavy Industries attended, along with First Vice Minister of Trade, Industry and Resources Moon Shin-hak and Yoon Sung-hyuk, industrial policy secretary at the presidential office.
Kim expressed concern that year-end conditions — when markets are typically thin — could lead to significant shocks from small transactions. He warned that exchange rate fluctuations could widen as overseas foreign exchange markets close for the holidays.
He also pointed to foreign investors in Hong Kong and Singapore betting on a prolonged weakness in the won.
“I don’t believe that Korean companies would do such a thing,” Kim told the CFOs. “If companies hoard dollars overseas without making significant investments, it could lead to misunderstandings that they are trying to profit later from foreign exchange gains. Please avoid such misunderstandings.”
![A bank employee counts U.S. dollar bills at Hana Bank's counterfeit curency response center in Jung District, central Seoul on Dec. 17. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/12/22/d8c1374f-2c6d-405d-81cb-1039e1261404.jpg)
A bank employee counts U.S. dollar bills at Hana Bank's counterfeit curency response center in Jung District, central Seoul on Dec. 17. [YONHAP]
“Do not chase small gains — focus on your core business,” Kim reiterated.
Ahead of the meeting, the presidential office asked the companies to submit plans for currency exchanges for the remainder of the year and through February 2026. They were also asked to report on this year’s export volume, overseas investment plans for next year, how they intend to finance those investments, and their foreign exchange hedging strategies.
The government made the request to better assess potential exchange rate volatility driven by corporate foreign exchange activities at the end of the year and the beginning of the next.
Separately, the Ministry of Economy and Finance, the Financial Services Commission (FSS), the Bank of Korea and the Financial Supervisory Service announced a joint plan to “flexibly adjust foreign exchange soundness regulations,” to encourage banks and exporters to release more dollars into the market.
As part of this plan, restrictions on dollar-denominated loans to exporters will be eased. Currently, companies can only borrow foreign currency for facility investment; under the new policy, they will be allowed to use such loans for working capital, including payroll.
![The won is seen quoted above the 1,478-won range on an electric board inside Hana Bank's dealing room in Jung District, central Seoul on Dec. 18. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2025/12/22/e5d696a8-d6bb-474d-a438-638a7e59cd4a.jpg)
The won is seen quoted above the 1,478-won range on an electric board inside Hana Bank's dealing room in Jung District, central Seoul on Dec. 18. [NEWS1]
The government also plans to reduce the regulatory burden that requires commercial banks to maintain dollar reserves — or “emergency dollar holdings” — to prepare for crises.
Banks are obligated to hold a certain amount of foreign currency and report plans to boost reserves to regulators. This requirement will be suspended through the end of June 2026.
“There are idle dollars held unnecessarily by banks, which are not being circulated in the market,” said Jeong Yeo-jin, director of the Foreign Exchange Policy Division at the Finance Ministry. “Easing this requirement will help release that liquidity into the market.”
The ceiling on forward position holdings by foreign bank branches in Korea will also be relaxed — from 75 percent to 200 percent of equity — allowing them to bring in more dollars from their overseas headquarters for domestic circulation.
Authorities also plan to expand the use of omnibus accounts, allowing foreign individual investors to trade Korean stocks directly through their local brokers without opening a separate account with a Korean brokerage.
![A currency exchange in Myeongdong, Jung District, central Seoul is seen on Dec. 17. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2025/12/22/386b5157-ffde-42c1-bf4a-96cf86e42991.jpg)
A currency exchange in Myeongdong, Jung District, central Seoul is seen on Dec. 17. [NEWS1]
The FSS also held a meeting with local brokerages on Friday to urge a halt to aggressive overseas investment marketing, including promotions with zero fees.
“You are prioritizing short-term fee income at the expense of investor protection,” said FSS Gov. Lee Chan-jin.
Brokerages plan to halt new overseas investment promotions such as sign-up bonuses and zero-fee deals. Ongoing campaigns will also be ended early, subject to legal review.
Meanwhile, the won closed at 1,478.3 won to the dollar Thursday, down 1.5 won from the previous day based on the weekly closing price — a sign of slight appreciation.
The exchange rate briefly exceeded 1,480 won on Wednesday. Despite full-scale interventions, analysts say the government’s moves may still fall short of thoroughly calming market jitters.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY AHN HYO-SEONG,YOON SUNG-MIN,YOON JI-WON [[email protected]]
with the Korea JoongAng Daily
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