HIGHLIGHTS-S.Korea fin min’s remarks on FX at parliament

SEOUL, Oct 19 (BestGrowthStock) – Following are comments on foreign
exchange policy by South Korean Finance Minister Yoon
Jeung-hyun at a parliamentary committee on Tuesday:
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For a PDF report “Currencies: Race to the bottom”:
http://r.reuters.com/gez77p

Package of graphics on currencies, trade and monetary
policy: http://r.reuters.com/deh58p
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“No country wants the tension over currency policy to
develop into trade protectionism. Therefore, we expect to see a
good outcome at this G20 summit (in November). To do so,
several alternatives are in discussion.”

“I don’t think there is much hot money among the funds that
flew into our stock and bond markets.”

“It was introduced in May last year. We will carefully
consider (whether to unwind it) while taking into account the
possible impact on foreign investment and our sovereign credit
ratings,” in response to a lawmaker’s demand that the
government unwind exemption of withholding tax on foreign
investment in domestic bonds.

“An artificially (set) foreign exchange rate could help
strengthen price competitiveness (of export companies) over the
short term, but I agree such a practice hurts the (fundamental)
competitiveness and growth potential.”

“About possible measures, we cannot announce everything.
But we are preparing (them) in our own way,” in response to a
question if the government planned to adopt measures to curb
heavy capital inflows.

“(Foreign exchange rates) need to move, reflecting economic
fundamentals and market demand and supply.”

“The government is not using foreign exchange policy to
boost exports, but is trying to smooth a rapid volatility in
the foreign exchange rate on a herd behaviour.”
(Reporting by Cheon Jong-woo; Writing by Yoo Choonsik; Editing
by Ron Popeski)

HIGHLIGHTS-S.Korea fin min’s remarks on FX at parliament