Lee warns against foreign currency speculation

By Yoo Cheong-mo
SEOUL, Oct. 8 (Yonhap) -- President Lee Myung-bak on Wednesday accused unnamed corporations and investors of seeking to capitalize on the nation's financial turmoil by stocking up on U.S. dollars.

"Dollar hoarding appears to be rampant amid the scarcity of the U.S. currency,"
Lee said while meeting with a group of Korean military veterans at the
presidential office Cheong Wa Dae.
"Some businesses and individuals seem to think they can get rich quickly by
hoarding dollars amid the won's crash in value. But individual greed should be
put aside in times of national crisis," said the president.
He urged potential currency speculators to change their attitude towards the
global financial turmoil, stressing that South Korea, equipped with foreign
currency reserves worth US$260 billion, will not be left vulnerable to a foreign
exchange crisis.
"Unlike European countries, (East) Asia won't be swept into a financial crisis
because China, Japan and South Korea together hold nearly $1.8 trillion won in
foreign reserves," said Lee.
"South Korea has nothing to fear, as all of its foreign currency holdings can be
instantly cashed and are more than enough to cover its maturing short-term
foreign debts. Moreover, the nation is expected to post export surpluses in the
last quarter of this year," said Lee.
Lee's remarks came as the South Korean won fell more than 4 percent to 1,395
against the greenback on Wednesday, its lowest level since the outbreak of the
Asian financial crisis a decade ago.
The U.S. dollar surged against the local currency by nearly 200 won in just four
trading days amid growing concern about Seoul's limited foreign currency
reserves, prompting top economic policymakers to warn against foreign currency
speculation.
ycm@yna.co.kr
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