--- title: "The finance ministers of Japan and South Korea are concerned about excessive currency depreciation and are taking appropriate measures to prevent disorderly fluctuations" type: "News" locale: "en" url: "https://longbridge.com/en/news/279135961.md" description: "The finance ministers of Japan and South Korea expressed concerns over the excessive depreciation of their respective currencies and confirmed that measures will be taken to address market volatility. Both countries emphasized the importance of regional financial security and bilateral cooperation, reiterating their commitment to closely monitor the foreign exchange market to prevent disorderly fluctuations in exchange rates. The parties discussed the impact of the situation in the Middle East on financial markets and explored the possibility of promoting investment. The Japanese yen reached a 20-month low against the US dollar, while the South Korean won fell below the psychological barrier of 1500 won per US dollar. The Japanese finance minister stated that the government is ready to take necessary measures to respond to foreign exchange fluctuations at any time" datetime: "2026-03-15T01:00:51.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279135961.md) - [en](https://longbridge.com/en/news/279135961.md) - [zh-HK](https://longbridge.com/zh-HK/news/279135961.md) --- # The finance ministers of Japan and South Korea are concerned about excessive currency depreciation and are taking appropriate measures to prevent disorderly fluctuations According to foreign media reports, South Korea's Minister of Economy and Finance, Kim Yong-jin, and Japan's Minister of Finance, Katsunobu Kato, issued a joint statement after their meeting yesterday, expressing concerns over the excessive depreciation of their respective currencies and confirming that measures may need to be taken to address market volatility. The two finance ministers emphasized the importance of regional financial safety nets and bilateral financial cooperation (including foreign exchange swaps) and agreed to engage in further discussions on specific steps. ## Reaffirming Close Monitoring of the Foreign Exchange Market After their annual meeting, the two issued a joint statement expressing serious concern over the recent sharp depreciation of the Korean won and the Japanese yen, and reaffirmed their commitment to closely monitor the foreign exchange market and continue to take appropriate measures to prevent excessive and disorderly fluctuations in exchange rates. Both sides reiterated the importance of remaining vigilant and maintaining flexibility in policy actions to support economic growth and maintain financial stability. Katsunobu Kato stated at a post-meeting press conference that both Japan and South Korea agree that significant volatility has emerged in financial markets, including the foreign exchange market. The Japanese government is prepared to take action at any time, considering the impact of exchange rate fluctuations on people's livelihoods against the backdrop of rising oil prices. The joint statement indicated that while the global economy remains stable, it still faces various risks, including geopolitical tensions. The two sides engaged in in-depth discussions on the situation in the Middle East and recent fluctuations in financial markets, reaffirming the importance of close cooperation to ensure stable energy supplies. They also exchanged views on the potential for promoting investment in areas such as artificial intelligence to drive economic growth. ## Tensions in the Middle East Drive Up the Dollar Tensions in the Middle East have driven funds into the dollar as a safe haven, with the yen against the dollar hitting its lowest level in 20 months last Friday, approaching the psychological barrier of 160 yen per dollar, leading the market to believe that Japan may intervene. The Korean won also fell below the psychological barrier of 1,500 won per dollar this month, marking the first time since March 2009. Last Friday, Katsunobu Kato stated that authorities are prepared to take all necessary measures regarding foreign exchange under any circumstances and are always attentive to the impact of rising oil prices on people's daily lives. Kato noted that the financial market (including foreign exchange) is experiencing significant volatility in response to developments in the Middle East, which is evident. She declined to comment on specific exchange rate levels. When asked whether it is difficult to intervene in the foreign exchange market given the yen's depreciation driven by rising oil prices, Kato refrained from commenting. She also stated that Japanese authorities are maintaining very close communication with U.S. authorities, even more so than usual. 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