Finance Minister Koo Yun-cheol said that uncertainty in the foreign exchange market has recently increased and stressed the need for action if supply-demand imbalances persist.

Koo made the remarks on Friday during a meeting with the chiefs of the Bank of Korea, the Financial Services Commission and the Financial Supervisory Service.

The officials expressed concern about rising uncertainty in the foreign exchange market, noting that the won recently weakened to one-thousand-470 won per U.S. dollar due to overseas investments. 

They agreed on the need for structural improvement to the foreign exchange supply and demand.

The chiefs warned that persistent imbalances could entrench expectations of a weaker won, significantly limiting the exchange rate’s downward flexibility.

They emphasized the need to use all available measures to address the situation.

The ministry said financial and foreign exchange authorities plan to analyze the causes of exchange rate movements and consult with major players, including the National Pension Service and exporters, to stabilize the market.