South Korea Aims to Internationalize Korean Won
Quick Look
- South Korea is prioritizing the internationalization of the Korean won as a key task to advance its foreign exchange and financial markets.
- A task force discussed transforming the won into a freely convertible currency and managing potential risks.
AI-generated summary
Why It Matters
South Korea plans to reform its foreign exchange policies, maintained since the 1997 economic crisis, to advance its financial markets.
By Kang Yoon-seung
SEJONG, July 8 (Yonhap) -- The internationalization of the Korean won is a key task in the government's efforts to advance the country's foreign exchange and financial markets to the next level, a senior official said Wednesday.
Second Vice Finance Minister Huh Chang made the remark during a task force meeting on the internationalization of the Korean won, noting the country intends to fundamentally reform its foreign exchange policies, which have been maintained since the 1997 economic crisis.
The meeting came as South Korea plans to unveil a road map for the vision later this month, which was prepared in cooperation with the Bank of Korea and other relevant agencies.
During the meeting, the participants discussed ways to transform the Korean won into a "freely convertible currency" from its current status as a "restricted currency."
They also exchanged opinions on potential volatility and risks during the process of pursuing the internationalization of the Korean won, the ministry added.
"The participants agreed to maintain communication with the market by using the task force as a central platform," the ministry said.
Open Questions
- What specific reforms are planned?
- What is the timeline for internationalization?
- How will risks be managed?
