BOK governor nominee says won's weakness not a 'crisis' given Korea's large foreign reserves
Published: 13 Apr. 2026, 17:59
![Bank of Korea Governor nominee Shin Hyun-song arrives at his office in Jung District, central Seoul, on April 13 to prepare for his upcoming hearing session. [NEWS1]](https://koreaseafood.online/data/photo/2026/04/13/e9b6090e-e669-40d1-823e-22c189f8bc6e.jpg)
Bank of Korea Governor nominee Shin Hyun-song arrives at his office in Jung District, central Seoul, on April 13 to prepare for his upcoming hearing session. [NEWS1]
Shin made the remarks in written responses submitted to the National Assembly ahead of his confirmation hearing scheduled for Wednesday, noting that excessive currency depreciation could heighten inflationary pressures and increase the burden on domestic companies and households.
“Though the won has recently arrived at the 1,480 won range per dollar, its [depreciation against the dollar] following the Middle East conflict has been larger than that of other currencies, and uncertainty remains high. Authorities will continue to closely monitor foreign exchange market conditions,” he said. “There is a need to respond appropriately, if necessary, to excessive exchange rate movements.”
Shin, however, said the recent weakening of the won should not be interpreted as a sign of crisis, as current foreign exchange reserves are “at a sufficient level” to serve as a buffer against external shocks.
The country's strong external fundamentals and inflows tied to its inclusion in the World Government Bond Index could help ease pressure on the dollar-won exchange rate if tensions in the Middle East are resolved, he added.
The dollar to local currency rate has recently hovered around the psychologically significant 1,500-won mark, falling to its weakest level since 2009 when the country was grappling with the global financial crisis, as the Iran war that began in late February has pushed up global oil prices and stoked fears of broader economic impact.
The local currency traded at 1,495.4 won to the dollar at Monday's opening, depreciating by 12.9 won from the previous session's close, after U.S. President Donald Trump ordered a blockade of all ships entering or leaving the Strait of Hormuz following high-stakes peace talks with Iran that failed to make a breakthrough.
Yonhap
with the Korea JoongAng Daily
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