The Ministry of Economy and Finance announced on July 23 that it held investment briefings for major overseas investment institutions, urging them to actively expand investments in the South Korean market. The government also plans to establish a consultative body for continuous communication with foreign investors, explaining the roadmap for the internationalization of the won and the direction of foreign exchange market reforms.
According to the ministry, Moon Ji-sung, the Director of International Economic Management, hosted investment briefings in London on July 20 and in Singapore on July 22. Attendees included representatives from major global investment firms such as BlackRock, Amundi, Schroders, sovereign wealth funds, and global investment banks like Goldman Sachs, HSBC, and JP Morgan.
Moon emphasized, "This year, the real GDP growth rate is expected to reach 3%, the highest level in the past five years, and the nominal GDP is projected to increase by 12.3%, the highest in nearly 30 years. Our growth is supported by our rise to the fifth-largest exporter in the world, record-high current account surpluses, and increased capital investment in semiconductors."
He also introduced the key goals of the government's economic growth strategy for the second half of the year, known as the '3-4-5 strategy.' This includes recovering a potential growth rate of 3%, becoming one of the world's top four exporting countries, and achieving a gross national income (GNI) of $50,000 per capita, while promoting macroeconomic stability, supply chain and energy security, growth momentum, regional balanced development, and structural reforms.
Moon noted, "The changes in foreign exchange supply and demand, such as the increased spot and futures sales by shipbuilding and semiconductor companies, may not be temporary. The current value of the won is undervalued compared to the fundamentals of the South Korean economy, indicating potential for further appreciation."
Regarding geopolitical uncertainties in the Middle East, he stated, "Considering our economy's high dependence on energy imports, we will enhance domestic production and strategic reserves of key items, and strengthen supply chain and energy security through investments in overseas production facilities and long-term purchase contracts."
Additionally, Moon held a foreign exchange market briefing for members of the RFI in London and the Global Financial Markets Association's Foreign Exchange Division (GFXD) in Singapore. He detailed the current status of the South Korean government's foreign exchange market reform initiatives, including improvements to the RFI system, and explained the recently announced roadmap for the internationalization of the won, aimed at allowing for more convenient holding, trading, and procurement of the currency abroad.
Moon stated, "We will build infrastructure to enable foreign investors to conveniently trade, hold, and settle the won through existing banks located overseas, and we will pursue regulatory improvements to enhance liquidity supply and market participation centered on private financial institutions."
The government plans to officially launch a 'Global Core Investor Consultative Body' as a result of this investment briefing, which will serve as a communication channel for the government to directly explain improvements in foreign exchange and capital market systems to foreign investors and to continuously address and resolve issues raised during the investment process.
* This article has been translated by AI.
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