Government to release won internationalization roadmap this month

The government plans to finalize and release a "won internationalization roadmap" this month, outlining a path to converting the Korean won into a freely convertible currency. The initiative aims to overhaul the foreign exchange policy framework in place since the 1997 financial crisis, upgrading the country's foreign exchange and financial markets.

The Ministry of Finance and Economy said Vice Minister Heo Jang chaired a won internationalization task force meeting at the Government Seoul Building on Wednesday to discuss the plan.

The meeting drew representatives from the Ministry of Finance and Economy, the Financial Services Commission, the Bank of Korea, the Financial Supervisory Service and the Korea Securities Depository.

Participants reviewed the roadmap developed so far and discussed additional measures to strengthen it, with the goal of transitioning the won from its current status as a regulated currency to a freely convertible one.

The group also examined contingency measures to guard against risks that could arise during the won internationalization process, including increased volatility in the foreign exchange market.

"Won internationalization is a core task for upgrading our foreign exchange and financial markets by fundamentally reforming the foreign exchange policy framework maintained since the 1997 financial crisis," Heo said, urging each agency to pursue its assigned tasks with a sense of responsibility throughout the roadmap's development and implementation.

After releasing the roadmap, the government said it will move quickly to flesh out detailed implementation plans for each task and maintain ongoing communication with the market through the won internationalization task force. Relevant agencies will continue to cooperate by monitoring progress on individual tasks while simultaneously managing system implementation and risk.