BOK'S LEE said South Koreans need not overreact to short-term won volatility,
arguing structural shifts have made the currency more resilient as Korea has
moved from a net debtor to a net creditor. He said authorities must adopt a
different strategy and that, as a small economy, policymakers should be humble;
he can smooth volatility but cannot determine exchange-rate direction, and only
fundamental policy change can do that. He declined to comment on the
interest-rate path, saying policymakers may monitor developments in a US‑Iran
war, expansionary fiscal policy and the upcoming US midterm elections as key
variables. He warned that even if the semiconductor cycle continues, worsening
US‑Korea trade tensions could weigh and would affect inflation dynamics
differently.
