South Korea Steps Up Monitoring as Won Weakness Nears 2009 Lows

South Korea’s finance ministry is stepping up oversight as Korea won weakness persists near levels last seen during the 2009 financial crisis, setting up a task force with exporters, securities firms and regulators, officials said.

Operating under the international finance bureau, the group will monitor exporters’ currency-conversion behaviour and consider incentives for companies that convert foreign-currency earnings back into won.

The won has remained below 1,450 per dollar amid strong domestic demand for foreign securities and closed at 1,466.9 per dollar on Monday.

The task force will also review tax measures and assess whether brokerages are properly explaining overseas investment products or encouraging excessive leveraged bets.

Separately, the finance ministry, the Bank of Korea, the National Pension Service and the welfare ministry will develop a framework aimed at easing FX volatility linked to Korea won weakness.