South Korea central bank will only respond if won moves significantly

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.