BOK’s Shin Says Up to $20 Billion of Annual US Investment Won’t Strain Won

Forecast Trend Report by Period

Shin Hyun-song, governor of the Bank of Korea, said an increase in South Korea’s investment in the US is unlikely to have a major effect on the won-dollar exchange rate. Given the country’s foreign-exchange reserves and investment income, annual investment of as much as $20 billion is manageable, he said.

Speaking at a meeting with New York-based Korean correspondents in Jackson Hole, Wyoming, on Aug. 28, Shin said South Korea has about $427 billion in foreign-exchange reserves and continues to earn returns on its assets. Against that backdrop, annual investment in the US of up to $20 billion would not place a significant burden on the exchange rate, he said.