Core Viewpoint - The South Korean government is taking urgent measures to address the depreciation of the Korean won against the US dollar, which has reached its highest monthly level since the financial crisis, prompting concerns about inflation and purchasing power [2][5]. Group 1: Government Response - An emergency meeting was convened on December 14, involving various government departments, including the Ministry of Health and Welfare and the Ministry of Trade, Industry and Energy, to discuss the financial and foreign exchange market trends [2][4]. - The average exchange rate of the won against the dollar has surpassed 1470 won, marking a significant depreciation, with the rate dropping to 1479 won during night trading on December 12 [2][5]. Group 2: Economic Implications - Concerns have been raised by policymakers regarding the potential inflationary pressures and the impact on consumer purchasing power due to the weakening won [5][6]. - The Bank of Korea has maintained interest rates, resulting in a 2% interest rate differential with the US, the highest level since 1999, which may contribute to the won's depreciation [5][6]. Group 3: Market Reactions - Analysts suggest that if the won approaches the psychologically significant level of 1500 won per dollar, the government may increase intervention efforts [6]. - The National Pension Service (NPS), as the largest institutional investor in South Korea, has begun selling dollars to support the won, with plans to become more active if the exchange rate reaches the 1480 to 1500 won range [6][7].
货币战争紧急出手！韩国要打一场韩元保卫战？