South Korean financial authorities held an emergency meeting with domestic and
foreign bank officials as the won weakened sharply against the dollar, seeking
cooperation to stabilize the FX market and warning of a tough crackdown on
speculative trading and market disruption. The Financial Services Commission
said on the 8th that Secretary‑General Shin Jin‑chang chaired the meeting,
attended by the Ministry of Economy and Finance, the Financial Supervisory
Service, the Bank of Korea and major banks; authorities flagged offshore
non-deliverable forwards (NDFs) as a potential source of concentrated volatility
and will monitor trends and study measures to channel offshore activity onshore.
The BOK and FSS will review transactions for speculative or disruptive behavior
exploiting won weakness and said they will take strict measures if warranted.
