South Korea's Financial Supervisory Service and Central Bank to Inspect Speculative Won Trading

On June 8, the Financial Supervisory Service of South Korea stated that tensions in the Middle East and market expectations of a Federal Reserve interest rate hike have driven fluctuations in the won exchange rate. The Financial Supervisory Service has requested banks to strengthen risk management measures in response to market volatility. Additionally, the Financial Supervisory Service and the Bank of Korea will conduct inspections of speculative won trading. The Financial Supervisory Service emphasized that excessive volatility in the foreign exchange market and one-sided positions are undesirable, and stated that the fundamentals of the South Korean economy and external credibility remain solid.