S. Korea forex policy eyes price stability-finmin

Sun Aug 3, 2008 10:16pm EDT
 
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TOKYO, Aug 4 (Reuters) - South Korean Finance Minister Kang Man-soo said the nation's foreign exchange policy will take into account price stability, Japan's Nikkei economic daily reported on Monday.

Kang also told the Nikkei in an interview that short-term measures to stabilise prices and mid- to long-term steps to boost economic growth can go together.

The comments suggest that South Korea will continue to cope with any sharp falls in the won KRW=, which would accelerate inflation, through won-buying and dollar-selling intervention, the Nikkei said.

The South Korean government has conducted won-buying intervention in huge amounts since early July after shifting its policy focus from boosting growth to stabilising prices. (Reporting by Leika Kihara; Editing by Michael Watson)

 
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