South Korea will allow more companies to borrow overseas to boost foreign exchange liquidity

The South Korean Ministry of Finance announced that it will relax foreign exchange regulations, allowing more companies to borrow overseas to enhance liquidity and defend the won, which is at a 15-year low. This move aims to improve the foreign exchange liquidity situation and alleviate the depreciation of the won caused by Federal Reserve policies and domestic political uncertainties. The Ministry stated that it will allow companies to borrow in foreign currencies and convert them into won for investment, while also raising the maximum limit on banks' foreign exchange futures contract funds. Economists pointed out that this policy aims to control the depreciation of the local currency, but the external environment still poses pressure on emerging currencies