Bank of Korea’s Hwang Kunil warns that the speed of recent won volatility is too fast

A voting member of the Bank of Korea, Hwang Kunil, has warned that the recent rapid fluctuations in the Korean won deserve close attention. This suggests that although this export-dependent economy is benefiting from the surging demand for artificial intelligence (AI) chips, he remains cautious about currency movements. He stated that when it comes to the exchange rate, attention must be paid to its volatility and pace of change, rather than specific levels. The recent pace of fluctuations has been somewhat faster than expected, and they are keeping a close eye on its volatility. That said, even after adjusting for the huge current account surplus and foreign capital rebalancing, there is still downward pressure on the exchange rate. Hwang Kunil, who previously served as Vice Minister of Korea’s Ministry of Strategy and Finance and as Executive Director at the World Bank, explained that the Korean won’s recent appreciation is due to a surge in dollar inflows driven by global artificial intelligence infrastructure construction, which has increased demand for specialized memory chips from top Korean chipmakers SK Hynix and Samsung Electronics.