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South Korea will only take currency action if 'herd behavior is seen,' central bank chief says

  • South Korea's central bank chief said that the bank will leave its currency to market forces, but would respond if moves in the won get too big
  • Lee Ju-yeol said the Bank of Korea will take active steps when herd behavior is seen
  • He also said monetary policy will not be decided on foreign exchange rates alone
Lee Ju-yeol at the Korea Chamber of Commerce and Industry breakfast special lecture with business leaders in Seoul, November 17, 2015.
Seung-il Ryu | NurPhoto | Getty Images
Lee Ju-yeol at the Korea Chamber of Commerce and Industry breakfast special lecture with business leaders in Seoul, November 17, 2015.

South Korea's central bank chief said on Thursday the bank will leave currency moves to market
forces, but would respond if changes in the won get too big.

"The stance on currency has not changed — we will respect that the market moves on supply and demand but the finance ministry and the Bank of Korea will stick to our principle, which is to take active steps when herd behavior is seen," Lee Ju-yeol told reporters on the sidelines of a meeting with South Korea's finance minister in Seoul.

"Monetary policy is not decided on foreign exchange rates alone," added Lee, responding to a question on whether the won's current strength would affect the bank's policies.