Lee Jae Myung Forecasts Won Strength and Stability Within Two Months

Finance Minister Lee Jae Myung has projected a strengthening of the South Korean won (KRW) within the next 60 days, signaling growing confidence in the nation's monetary and fiscal framework. Speaking at a press briefing on January 21, 2026, he emphasized that recent improvements in foreign exchange reserves and trade balances have laid a solid foundation for currency stability. He noted that foreign exchange reserves now stand at $485 billion, up from $462 billion in late 2025, reflecting increased capital inflows and reserve management efficiency. The minister highlighted that inflation has moderated to 2.7% year-on-year in December 2025, down from 3.9% in July, allowing for greater flexibility in interest rate policy. Additionally, the current account surplus reached $9.8 billion in the final quarter of 2025—the largest since Q2 2023—driven by robust exports in semiconductors and electric vehicles. These figures support Lee’s assertion that structural reforms and targeted stimulus measures are yielding results. Market reactions followed closely, with the KOSPI index rising 1.2% on the day and the won appreciating 0.8% against the U.S. dollar. Foreign institutional investors increased net purchases of Korean stocks by $380 million in early January, marking the third consecutive week of inflows. Analysts suggest that the forecast could reduce speculative pressure on the currency, particularly in the short-term derivatives market. The outlook also influences corporate planning: major exporters like Samsung Electronics and Hyundai Motor have begun adjusting forward hedging strategies, anticipating reduced volatility. Meanwhile, central bank officials confirmed they remain prepared to intervene if necessary, though no immediate action is expected.