Gov't calls on exporters to address FX volatility

Foreign exchange rates are displayed on a screen at Incheon International Airport in Incheon, Monday. Newsis

Korea on Thursday called on exporters to help ease recent volatility in the foreign exchange market, which includes promptly converting their export earnings into the won to boost dollar supply.

The Ministry of Finance and Economy made the call during a meeting with major exporters, including Samsung Electronics, SK hynix and Hyundai Motor Group, held to discuss recent trends facing the country.

During the meeting, the ministry said the Korean won has recently come under pressure despite the country's solid economic fundamentals as foreign investors sought to lock in profits from the stock market.

The Korean won remained above the 1,500-won level against the U.S. dollar for the 17th consecutive session through Wednesday. The currency was trading at 1,526.7 won per dollar as of 2:37 p.m. Thursday.

The ministry said the prolonged strength of the greenback against the Korean won could have adverse effects on the domestic economy and increase the burden on businesses and households, and asked exporters to help address such volatility.

The participants also discussed ways to promptly convert export earnings into the Korean currency and increase the relocation of overseas funds held by domestic companies.

On the previous day, the government vowed to take stern action against activities that undermine stability in the foreign exchange market, such as excessively prepaying import costs to overseas counterparts or using virtual assets for settlements in ways that disrupt the dollar supply.