[2026 Parliamentary Audit] Shin Hyunsong: "Further Won Strength More Appropriate for Stimulating Domestic Demand"

"The won has room to appreciate further," he reiterated.

Bank of Korea Governor Shin Hyun-song said on October 23 that the won has room to appreciate further, adding that, at present, further won strength would be more appropriate for restoring balance to the economy and stimulating domestic demand.

Bank of Korea Governor Shin Hyunsong answers lawmakers' questions during a comprehensive audit of the Ministry of Planning and Budget, the Bank of Korea and other institutions by the National Assembly's Finance and Economy Planning Committee at the National Assembly in Yeouido, Seoul, on the 23rd.

At a comprehensive audit of the Bank of Korea by the National Assembly's Finance and Economy Planning Committee, held that day at the National Assembly in Yeouido, Seoul, Governor Shin was asked by Democratic Party of Korea lawmaker Kim Young-hwan about the possibility of the won-dollar exchange rate falling in the future. He replied, "I think there is room for that."

"It is best for the exchange rate to move gradually and predictably, even when it fluctuates," Governor Shin said. "There are pros and cons to both a stronger and a weaker won, but given that the won remains weak, I think further appreciation would be somewhat more appropriate at this point, whether to restore balance to the economy or to boost activity in the domestic-demand sector."

Governor Shin also said he believed the won had room to appreciate further when Democratic Party of Korea lawmaker Oh Gi-hyeong asked whether its value could rise further, citing the effective exchange rate. Asked whether it could reach the mid-1,200-won range, he declined to give a direct answer, explaining, "Looking at the effective exchange rate, the won was exceptionally undervalued early this year, and we are now seeing a reversal of that."

This content was produced with the assistance of AI translation services.