Seoul: The government is adopting "extra vigilance" regarding the recent fluctuations in the foreign exchange market, Finance Minister Koo Yun-cheol announced on Friday. This statement underscores the administration's commitment to stabilizing the financial environment as South Korea navigates its ongoing economic recovery, despite challenges posed by geopolitical tensions in the Middle East.

According to Yonhap News Agency, Finance Minister Koo Yun-cheol delivered these remarks during a meeting with economy-related ministers in Seoul. He highlighted that despite the current challenges, including rising volatility in the financial and foreign exchange markets and consumer price issues impacting citizens' livelihoods, the government is maintaining a careful watch over these developments.

The South Korean won has hovered over the critical threshold of 1,500 won against the U.S. dollar for the 13th consecutive trading session as of Thursday, reflecting ongoing market volatility. Despite these challenges, Koo emphasized that the South Korean economy is demonstrating signs of progress. The Organization for Economic Cooperation and Development (OECD) has revised its forecast for South Korea's economic growth this year, increasing it to 2.6 percent, up from 1.7 percent just three months prior.

Koo attributed the country's economic resilience to its expansionary fiscal policy, which has not only spurred growth but also enhanced fiscal sustainability, fostering a positive economic cycle. Looking forward, the finance minister outlined plans for continued investments in regional areas, ongoing structural reforms, and efforts to address economic disparities to maintain this momentum.