Recent FX volatility excessive compared to S. Korea's fundamentals: official

Recent FX volatility excessive compared to S. Korea's fundamentals: official By Kang Yoon-seung SEOUL, May 20 (Yonhap) -- Recent volatility in the South Korean won appears excessive relative to the country's strong economic fundamentals, a senior financial official said Wednesday, noting the government stands ready to take necessary measures if the need arises. Second Vice Finance Minister Huh Chang made the remarks during a meeting with representatives from foreign banks and investors, including Goldman Sachs and Deutsche Bank, where participants exchanged views on recent market conditions, according to the Ministry of Finance and Economy. During the meeting, Huh said the South Korean financial market has faced external uncertainties, including stalled peace talks related to the Middle East conflict and growing concerns over global inflation, which prompted foreign investors to sell local shares. The second vice finance minister, however, said volatility in the foreign exchange market appears excessive compared with the country's overall economic fundamentals. The government is closely monitoring the foreign exchange market to prevent speculative trading and plans to take action when necessary, he added. According to the finance ministry, officials from the foreign financial firms shared the view that volatility in the foreign exchange market is likely to ease if external factors, such as the Middle East crisis, are resolved. The recent sell-off in Seoul shares by foreign investors was seen as part of portfolio rebalancing and profit-taking following the South Korean market's sharp gains, they added. Huh said the government will continue efforts to bring the local capital market in line with global standards and support foreign firms in making long-term investments in the country. The Korean won traded at 1,512.2 won against the greenback as of 2 p.m., down 4.4 won from the previous session. colin@yna.co.kr (END) - BTS to headline halftime show at 2026 World Cup final - (LEAD) Teenage pianist Son Se-hyeok wins Prague Spring competition - (Yonhap Interview) 'Wars have limits,' but 'blatant disregard' for rules growing: ICRC Korea head - Teenage pianist Son Se-hyeok wins Prague Spring competition - Supernatural horror 'Salmokji' becomes most-watched Korean horror film - (LEAD) Teenage pianist Son Se-hyeok wins Prague Spring competition - SeMA retrospective revisits works of abstract art master Yoo Young-kuk - (Yonhap Interview) 'Wars have limits,' but 'blatant disregard' for rules growing: ICRC Korea head - (2nd LD) Trump arrives in Beijing for summit talks with Xi on trade, Iran, Taiwan, other topics - (URGENT) U.S., China agree Strait of Hormuz must remain open during Trump-Xi summit: White House official - (LEAD) Starbucks Korea chief fired over 'Tank Day' event on pro-democracy anniv. - (7th LD) Lee, Takaichi agree to boost cooperation in supply chains, procurement of crude oil, LNG - (5th LD) Lee, Takaichi agree to boost cooperation in supply chains, procurement of crude oil, LNG - Japan PM Takaichi heads home after 2-day visit to Andong, summit with Lee - Starbucks' U.S. headquarters also apologizes over 'Tank Day' event in S. Korea