Government urges major exporters to convert foreign-currency holdings, repatriate overseas reserves

The government has called on major export companies to play an active role in stabilizing the foreign exchange market — urging them to convert export proceeds and foreign-currency deposits into won and to bring more overseas reserve funds back into the country. The appeal comes as volatility in the currency market has shown signs of easing, with the government seeking public-private cooperation to sustain that trend.

According to the Ministry of Economy and Finance, Vice Minister Heo Jang held a meeting with executives from major exporters — including Samsung Electronics, SK hynix, Hyundai Motor, Kia, HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean and Samsung Heavy Industries — at Government Complex Seoul on Tuesday.

At the meeting, participants reviewed recent foreign exchange trading trends and discussed ways to strengthen public-private cooperation to reduce currency market volatility.

"I urge major export companies to take an active role in converting export proceeds and foreign-currency deposits into won and in bringing more overseas reserve funds back home, taking into account the changed conditions in the foreign exchange market," Heo said.

The government assessed that the supply-demand imbalance in the foreign exchange market has recently eased, with signs of stabilization emerging.

Heo noted that the won-dollar rate, which had climbed to around 1,550 won per dollar just before a meeting with exporters in June, had fallen sharply to the late-1,400 range in a short period. He attributed the move to increased hedging by export companies, forward dollar sales by shipbuilders, and the inflow of funds from SK hynix's American depositary receipt issuance in the United States. "The dollar-buying pressure from offshore investors, who had been betting on won weakness, is also easing somewhat," he said.

He added that foreign-currency supply-and-demand conditions are expected to improve further in the second half of the year, supported by solid economic fundamentals including strong semiconductor exports.

The government's current-account surplus forecast for this year stands at $290 billion, far exceeding its earlier projection of $135 billion. Last year's current-account surplus reached a record $123.1 billion.

"External uncertainties persist, including the ongoing war in the Middle East, but the government's resolve to quickly anchor the market's shifting expectations toward stability is firm, and we have secured ample capacity to respond in support of market stability," Heo said.

The companies at the meeting agreed that a stable foreign exchange market is critical to reducing uncertainty across the broader business environment and to laying the groundwork for steady investment and operations. They pledged to actively support the government's efforts to stabilize foreign-currency supply and demand so that the recent improvement in market conditions can take firm hold.