Gov't taking 'extra vigilance' on FX volatility: finance minister

Finance Minister Koo Yun-cheol speaks during a meeting with economy-related ministers at Government Complex Seoul, Friday. Courtesy of Ministry of Finance and Economy

The government is taking "extra vigilance" over the recent volatility in the foreign exchange market, the finance minister said Friday.

Finance Minister Koo Yun-cheol made the remark during a meeting with economy-related ministers in Seoul, noting Korea has made some progress in its economic recovery despite the Middle East war.

"Concerning the rising volatility in the financial and foreign exchange markets, along with challenges for consumer prices linked to people's livelihoods, the government is taking extra vigilance," Koo said.

The Korean currency has traded over the psychologically important level of 1,500 won against the U.S. dollar for the 13th consecutive trading session through Thursday.

Koo said the Korean economy has nevertheless shown signs of improvement, with the Organization for Economic Cooperation and Development (OECD) revising up Korea's economic growth outlook for this year to 2.6 percent from 1.7 percent three months earlier.

"Korea's expansionary fiscal policy has accelerated growth, which in turn improved fiscal sustainability, creating a virtuous cycle," Koo said.

The finance minister said Korea will continue to make investments in regional areas, pursue structural reforms and address economic disparities on the back of the momentum.