South Korea Wants to Internationalize the Korean Won?
luvsmiling, Aug. 18, 2015, 8:27 a.m.
The South Korean government is planning to examine the possibilities of the internationalization of the Korean won, through the formation of a task force that is expected to begin deliberations as early as next month.
According to the Ministry of Strategy and Finance on August 16, the task force will consider various factors including the usage of Korean won in settlement accounts for cross-border trade and services, direct purchases of bond and stocks denominated in won overseas without the need to report to the Bank of Korea, and others.
In addition, the task force will discuss easing foreign exchange laws to allow foreigners to buy and sell the won freely overseas.
However, the government remains cautious with regards to full-fledged deregulation in the sector, as it could have a considerable impact on the market.
An official at the ministry said, “To raise the status of the Korean won, we need to internationalize it, but there is almost no possibility to remove the latches all at once. We will implement the discussion in stages, taking into consideration market reactions and in-depth analysis on the matter.”