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Shin Hyun-sung, the Governor of the Bank of Korea, evaluated the flow of the won after attending an economic policy symposium in Jackson Hole, Wyoming, stating that "the won has gained a certain level of immunity to external shocks." He emphasized that the Bank of Korea has raised the benchmark interest rate, saying, "We have raised rates and stabilized the exchange rate, so we are well-prepared for any shocks that may come."
He mentioned that the won-dollar exchange rate fell to 1,372.5 won on the 28th, indicating that the won is maintaining stability even amid a strong dollar. Governor Shin added that South Korea's commitment to invest up to $20 billion annually in the US is "at a level that can be sufficiently managed." Currently, South Korea's foreign exchange reserves amount to approximately $427 billion, and considering the returns on foreign asset management, he stated that it does not pose a significant burden on the exchange rate.
Additionally, he analyzed that the speech by Kevin Warsh, Chair of the Federal Reserve, at Jackson Hole provides important implications for the upcoming September Federal Open Market Committee (FOMC) meeting. Such remarks are expected to contribute to enhancing confidence in the stability of the South Korean economy and its external investments.