The Korea Times
President Lee Jae Myung on Monday attributed the won's recent weakness against the dollar to foreign investors rebalancing their portfolios after a sharp rally in local stocks, describing the Korean currency's decline as temporary. "It is true that the exchange rate is high, but I see it as temporary," Lee said during a televised press conference marking his first year in office. "Stock prices have risen so much that they are having an unusual impact on the foreign exchange market. The stock rally has become a factor pushing the exchange rate higher." Lee said foreign investors appeared to be selling off Korean stocks to rebalance their portfolios after the benchmark KOSPI's sharp rally. "Korean stocks have risen too much in a short period of time. From the perspective of foreign investment funds, the share of Korean assets in their portfolios has become too large," he said. "In the short term, this is the biggest factor. But it is unlikely to continue indefinitely. Eventually, the Korean stock market will find its balance." Lee's remarks came as the won-dollar exchange rate hovered arou
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