Foreign exchange authorities are preparing measures, citing increased demand for foreign stock settlements from "Seohakgaemi" (retail investors in overseas stocks) as a major reason for the recent sharp rise in the Korean won's exchange rate. ⒸHanmiilbo

As the Korean won's exchange rate approaches the 1500 won mark, foreign exchange authorities have hinted at the possibility of additional taxation on "Seohakgaemi" (retail investors in overseas stocks), following discussions on mobilizing the National Pension Service as part of efforts to defend the exchange rate.

Foreign exchange authorities view the recent sharp rise in the Korean won's exchange rate as primarily caused by increased demand for foreign stock settlements from "Seohakgaemi." In response, they held a meeting on the 21st with foreign exchange managers from nine major securities firms, including Mirae Asset Securities and Korea Investment & Securities, to prepare countermeasures.

During the meeting, foreign exchange authorities proposed measures such as applying the daily average rate (MAR), but securities firms reportedly expressed reservations, stating, "If the settlement timing changes, the exchange rate applied will differ for each customer."

In a press conference on exchange rates on the 26th, Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-cheol stated regarding additional capital gains tax on overseas stocks, "We are not currently reviewing it," while also leaving room for further taxation by saying, "Policies are not absolute 'yes' or 'no'; they can be reviewed if circumstances allow."

Under current tax laws, if annual capital gains from overseas stocks exceed 2.5 million won, a 22% capital gains tax must be paid on the excess amount.

Additionally, the government announced on the 25th that "the National Pension Service's overseas investment amounts to tens of trillions of won annually," and stated that they would "seek ways to promote exchange rate stability without undermining the profitability of the National Pension Service."

However, the public reception to this proposal has been negative. Numerous comments have appeared on various online communities, such as, "Didn't you say you would increase returns to delay fund depletion? Are you now going to use the public's retirement funds for exchange rate defense?"

On the 27th, Jang Dong-hyuk, the interim leader of the People Power Party, stated at a Supreme Council meeting, "The current situation, with the exchange rate on the verge of breaking 1500 won, is a near-collapse of the national economy," and pointed out, "Seven out of ten large corporations are suffering from financial difficulties, and small and medium-sized businesses and self-employed individuals are facing the fear of mass bankruptcies."

Regarding the government's move to mobilize the National Pension Service for exchange market stabilization, he criticized, "Do not tap into the retirement funds of the public and future generations," and asked, "Is the public's hard-earned money a slush fund to cover the government's incompetence?"

By Reporter Lim Yo-hee