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Korea's fin ministry says concerned about won rise

SEOUL: South Korea's Ministry of Finance and Economy said on Monday it was "greatly concerned" about the won's recent steep rise against the dollar.

It said in a statement the government's position on the won/dollar exchange rate had not changed and it would take action if necessary to stabilise the currency market. "(The government) is greatly concerned about the speed and magnitude of the won's appreciation against the dollar," said the ministry statement.

Dollar inflows from foreign buying of local stocks have been the main factor behind the won's recent rise, dealers said.

Foreign net stock buying, including on the Kosdaq over-the-counter trading, was estimated at more than one trillion won last week, brokers said.

The ministry said it was watching short-term dollar inflows and speculative trading in the non-deliverable forward market.

The ministry has repeatedly said the won's steep appreciation could be detrimental to local exporters as it hurts the price competitiveness of their wares in overseas markets.-Reuters