There is a possibility that the won could go strong

There is a possibility that the won could go strong (currency exchange rate decline) by Danny

Government and BOK Key Comments (Summary and interpretation): As of the end of November 25, the foreign exchange chiefs’ comments suggest a “substantial supply-demand control” beyond “verbal intervention.”

① Deputy Prime Minister and Minister of Strategy and Finance (Government)
Key Remarks: “If the volatility of the foreign exchange market expands too much, we will deal with it firmly. We are discussing a new foreign exchange framework in consultation with major beneficiaries such as the National Pension Service.” (2025.11.26, Press Conference and Ministerial Meeting on Economic Relations)

Summary: Expressing serious concern over the exchange rate’s break of 1,470 won, he hinted at specific measures to diversify dollar demand by adjusting the NPS’s overseas investment pattern, not just verbal intervention.

Interpretation: Unlike in the past, the willingness to actively use the National Pension Service as a “currency stabilizer,” which directly touches the structural cause of the won’s weakness, could put downward pressure on the market.

② Lee Chang-yong, Governor of the Bank of Korea (Bank of Korea)
Key Remarks: “Willing to intervene if exchange rate movements are excessive beyond fundamentals. Volatility is a problem rather than exchange rate levels.” (Interview by foreign media on Nov. 12, 2025, and recent remarks on the Monetary Policy Board)

Summary: The focus is on controlling the pace rather than sticking to a certain exchange rate level (e.g., 1,400 won), but the recent uptrend is deemed “excessive.” Today (11.27), the Monetary Policy Board is expected to freeze its key interest rate at 2.50% per annum, and one of the biggest reasons is ‘currency defense’.

Interpretation: Since lowering interest rates could further reduce the value of the won, the government is using a “struggle plan” to defend the exchange rate by freezing interest rates despite sluggish domestic demand.