South Korea's Ministry of Economy and Finance Vice Minister Heo Jang chaired a Won Internationalization Task Force meeting on May 8 to finalize a roadmap for transitioning the Korean Won from a regulated currency to a freely convertible currency, with the government planning to announce the roadmap this month. The initiative aims to reform the forex policy framework that has been in place since the 1997 financial crisis. This represents a core policy effort to upgrade Korea's foreign exchange and financial markets, with the task force having been established in February to prepare the comprehensive plan.
Government Finalizes Won Internationalization Roadmap for May Publication
The May 8 meeting at the Government Complex Seoul served as the final review session for the roadmap prepared since the task force's February launch. Attendees included representatives from the Ministry of Economy and Finance, Financial Services Commission, Bank of Korea, Financial Supervisory Service, and Korea Securities Depository. Participants reviewed the overall content of the roadmap developed through inter-agency consultations under the objective of converting the Won from a regulated currency to a freely convertible currency. The government plans to finalize the roadmap after final coordination among relevant agencies and announce it this month.
Task Force Addresses Forex Market Volatility Risks
During the meeting, participants discussed response measures for potential risks including increased foreign exchange market volatility during the Won internationalization process. Vice Minister Heo stated that Won internationalization is a core task to upgrade Korea's foreign exchange and financial markets by one level through reforming the foundation of forex policy maintained since the 1997 financial crisis. He requested that each agency take responsibility and do their best in drafting and executing the roadmap.
Agencies Commit to Post-Announcement Implementation Coordination
Participating agencies agreed to swiftly develop detailed implementation plans for each task following the roadmap announcement. They committed to close cooperation by communicating with the market through the Won Internationalization Task Force and monitoring progress on individual tasks. The coordinated approach aims to ensure systematic execution of the currency liberalization initiative across all relevant government and financial regulatory bodies.
FAQ
What did South Korea's government announce on May 8 regarding Won internationalization?
Vice Minister Heo Jang chaired a Won Internationalization Task Force meeting on May 8 to finalize a roadmap for transitioning the Korean Won from a regulated currency to a freely convertible currency, with the government planning to announce the roadmap this month.
Why is South Korea pursuing Won internationalization?
The initiative aims to reform the forex policy framework that has been maintained since the 1997 financial crisis and upgrade Korea's foreign exchange and financial markets by one level, representing a fundamental change to the country's currency management approach.
