BOK Governor Warns Against US Investments Threatening FX Market Stability

Bank of Korea Governor Rhee Chang-yong has drawn a hard line against US investments that could destabilize the foreign exchange market. The won, hovering NEAR multi-year lows against the dollar, has become a bargaining chip in broader economic negotiations with Washington—including tariff talks and investment commitments.

"While it's difficult to pinpoint an exact appropriate exchange rate level, the recent rise into the upper 1,400s appears substantially misaligned with our economic fundamentals," Rhee stated. The central bank chief emphasized coordinated action with the government to block capital outflows that exacerbate currency volatility.

New currency-support measures were unveiled last week as the won approached 1,500 per dollar—a threshold last breached during the 1997 Asian financial crisis. Rhee clarified that the $20 billion annual cap in the US trade agreement represents a ceiling, not a target, when market stability is at risk.