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South Korea's Finance Minister Koo Yun-cheol said the country's foreign exchange market will stabilize once risks stemming from Middle East tensions are resolved, according to multiple reports from Yonhap News. Speaking to reporters in Washington on Wednesday (U.S. time), Koo said, "If risks related to the Middle East conflict are resolved, the market will regain stability." The remarks came as the Korean won has shown signs of recovery following weeks of volatility linked to the U.S.-Israeli war with Iran, which has pushed up global oil prices and fueled inflation concerns.

Coverage Comparison

Yonhap News, South Korea's leading wire service, filed several reports covering Koo's statements from different angles over the past week. While all articles are attributed to Yonhap, they reflect distinct facets of the finance minister's activities: his meeting with South Korean reporters in Washington, his bilateral talks with U.S. Treasury Secretary Scott Bessent, his internal instructions to ministry officials, and his public remarks on market conditions. The coverage consistently emphasizes Koo's cautious optimism, his commitment to economic stability, and the government's 2 percent growth target for the year.

Key Claims

Finance Minister Koo Yun-cheol has made several related claims about the currency and economic outlook, according to Yonhap News:

  • The Korean won has been stabilizing against the U.S. dollar, strengthening to the 1,460 won range after Iran reopened the Strait of Hormuz. Koo told reporters in Washington on April 17 that the exchange rate is "stabilizing in the 1,460 won-per-dollar range," and he expressed hopes the won will appreciate in line with market expectations.
  • Volatility in financial and foreign exchange markets has "somewhat eased" following a two-week ceasefire between the United States and Iran, Koo said on April 9. South Korean stocks surged nearly 7 percent on the day the ceasefire was announced, and the won strengthened sharply.
  • Koo and U.S. Treasury Secretary Scott Bessent agreed during their April 17 meeting that the won's excessive volatility is "not desirable" and pledged to continue consulting on FX trends, according to Seoul's finance ministry.
  • The finance minister instructed officials to "remain vigilant" despite the ceasefire, saying "do not lower your guard" because future developments are difficult to predict, according to his office.
  • Koo acknowledged the won has "diverged excessively" from economic fundamentals, but said it is expected to return to "normal" levels once government FX policies are implemented. When asked what level would be considered normal, he said it was difficult to specify because exchange rates are determined by the market.
  • The Seoul government aims to meet its national growth target of 2 percent this year. Koo noted, "If the war ends as early as next week, the target may be achieved with relatively limited effort, but if it continues, broader policy responses will be required." He cited international organizations projecting growth at 1.9 percent, meaning the duration of the conflict is crucial.

Perspectives

South Korean Government Viewpoint

Koo's remarks project confidence in the economy's fundamentals and the market's ability to self-correct once geopolitical risks subside. He emphasized that foreign investors show strong interest in the Korean market and that international institutions have high expectations for South Korea's economic performance. At the same time, he expressed caution about the fragile ceasefire and instructed officials to prepare contingency measures in case the war drags on.

Washington's Stance

U.S. Treasury Secretary Scott Bessent's meetings with Koo reflect shared concerns about currency volatility and the economic fallout from the Middle East conflict. Bessent welcomed South Korea's implementation of a bilateral trade deal, including the National Assembly's passage of a bill on Seoul's $350 billion investment pledge in the U.S. The tone was cooperative, focusing on stabilizing supply chains and maintaining fiscal soundness.

Market and International Perspective

The International Monetary Fund's managing director, Kristalina Georgieva, met with Koo and stated that South Korea has "adequate fiscal room" and that its medium-term fiscal soundness efforts will help stable fiscal management, according to the finance ministry. This external validation supports the government's contention that its economic response to the crisis has been appropriate.

Temporal Context and Corrections

All statements attributed to Koo were made between April 9 and April 17, 2026, during a period when the U.S.-Israeli war with Iran had been ongoing for about a month. The ceasefire agreement, announced on April 8, was described by Koo as a two-week truce, but later reports noted its fragility due to continued restrictions in the Strait of Hormuz and Israeli strikes on Hezbollah in Lebanon. No corrections to earlier reporting have been issued, but the evolving situation suggests the outlook remains uncertain.