April 18, 2014 / 2:25 AM / 4 years ago

IMF sees South Korea's won undervalued by as much as 8 pct

SEOUL, April 18 (Reuters) - The International Monetary Fund said South Korea’s won was estimated to be undervalued by as much as 8 percent, as the country has “tended to be” more active intervening against the won’s appreciation.

It also said in a report dated April 17 that South Korea’s current account surplus was estimated be around 3 percent to 4 percent above average. It added that a further appreciation of the won would help support the rebalancing of the country’s economy.

The report was published based on the IMF’s annual policy consultations with South Korea held in late 2013 and on a staff report prepared early this year, it said in the report.

It said inflation in South Korea’s economy, the fourth-largest in Asia, is expected to return to the country’s target, which is set between 2.5 percent and 3.5 percent. Inflation has stayed below the lower end of the target for months. (Reporting by Choonsik Yoo; Editing by Chris Gallagher)

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