President Lee Jae Myung cites discomfort with USD/KRW near 1,500-1,600 and calls for stricter oversight of leveraged instruments.
South Korean President Lee Jae Myung flagged concerns over the won’s persistent weakness and the risks posed by leveraged financial products, adding political pressure to market dynamics. He described USD/KRW trading near 1,500 to 1,600 as “strange” given the country’s current account surplus, hinting at potential official intervention to support the currency.
The comments follow recent volatility in equities, where leveraged products amplified swings, prompting calls for tighter regulations. Authorities have already introduced measures, but Lee acknowledged market participants view the issue as a significant policy problem, signaling further scrutiny ahead.
The Kospi rebounded over 2% as bargain hunters returned after last week’s selloff, though lingering concerns over currency stability and regulatory risks may cap gains. Deputy Finance Minister remarks earlier suggested the won could strengthen further, aligning with Lee’s stance.