Deputy Prime Minister and Finance Minister Koo Yun-cheol presides over an emergency economic headquarters meeting combined with an economic ministers' meeting at the Government Seoul Building in Jongno-gu, Seoul, on Friday. [Yonhap]
Deputy Prime Minister and Finance Minister Koo Yun-cheol presides over an emergency economic headquarters meeting combined with an economic ministers' meeting at the Government Seoul Building in Jongno-gu, Seoul, on Friday. [Yonhap]

Deputy Prime Minister and Finance Minister Koo Yun-cheol said Friday the government is closely monitoring widening volatility in financial and foreign exchange markets and the strain on household prices.

Speaking at an emergency economic headquarters meeting combined with an economic ministers' meeting at the Government Seoul Building, Koo said market volatility remains elevated despite strong external indicators. He pointed to April's current account surplus of $28.29 billion and a record cumulative surplus for the January–April period.

"We will take even firmer care of the everyday economy while pushing ahead in earnest with structural reform for a great economic leap forward," he added.

The dollar-won rate closed the overnight session at 1,532.00 won at 2 a.m. Friday, up 15.60 won from the previous Seoul market close. That was 2.30 won above the daytime session's closing rate of 1,529.70 won.

The won weakened further as trading moved through London and into New York, with the dollar-won rate touching an intraday high of around 1,540 won. That was the highest level in 17 years, since the intraday high of 1,561.00 won on March 10, 2009, during the global financial crisis.

During the regular Seoul session, the dollar-won rate moved between 1,520 and 1,530 won. The rate had surged into the 1,530 won range in the non-deliverable forward market during South Korea's local elections on Wednesday, and that level held through the regular Seoul session.

Koo cited visible signs of economic recovery as evidence that the public, businesses and the government are producing results together despite difficult conditions, including the war in the Middle East. Among the examples he gave was the OECD's sharp upward revision of South Korea's growth rate forecast for this year, from 1.7 percent to 2.6 percent.

The meeting also took up agenda items including the government's response to the Middle East war, a comprehensive safety management plan for the agriculture and forestry sector, and measures to accelerate the seventh regional revitalization investment fund project.


oskymoon@heraldcorp.com