[FT]Interest rate cut may further weaken won

Interest rate cut may further weaken won
금리인하가 원화약세로 이어질 것이다.

By Andrew Wood in Hong Kong
Published: November 6 2008 18:16 Last updated: November 6 2008 18:16

The South Korean won fell 4.9 per cent in value to Won1,330.70 to the dollar in Seoul on Thursday as foreign investors worried that the export-led economy would suffer badly during a global slowdown and sought the safety of dollars.
원화는 수출부진과 달러부족에 대한 우려로 가치가 떨어졌다.

Since the start of the year the won has depreciated by 30 per cent, making it Asia’s worst performing major currency.
원화는 연초대비 30%나 떨어졌다. 아시아 주요국 통화 중 하락세가 가장 크다.

The Bank of Korea meets on Friday and is widely expected to cut interest rates to help promote economic growth, which may weaken the won further.
한국은행은 경기부양을 위해 이자를 내렸지만 이로인해 원화의 가치는 더욱 떨어질 것이다.

The Korean currency has been exceptionally volatile in recent weeks. On October 28 it fell to Won1,467 to the dollar for the first time since early 1998. Two days later it jumped 14.2 per cent in value on news of a $30bn currency swap deal between the Bank of Korea and the US Federal Reserve. The government has intervened aggressively to support the won, draining $27.4bn, or 11 per cent, of the country’s ­foreign exchange reserves last month.
최근 원화는 변동이 심했다. 10월 28일에는 1998년 이후 처음으로 1,467원까지 떨어졌다. 이틀 후에는 정부가 달러스왑계약을 발표하자 14.2%나 올랐다. 정부는 274억달러를 시장에 풀어서 원화의 하락을 막았다.

Lee Myung-bak, the president, came to power this year saying he would ­promote business and help the economy. But the former Hyundai executive has struggled to maintain confidence in the country’s ability to withstand a worldwide recession and deliver on his promise of 7 per cent annual growth.
이명박대통령은 경제와 기업을 살리겠다는 공약으로 당선되었다. 그러나 세계경기침체로 7%성장을 이루겠다는 그의 공약은 점점 지키기 힘들어지고 있다.

Last month the government announced a $130bn package to help banks, which needed to roll over short-term, foreign-denominated debt, and a plan to spend Won5,000bn to support construction and housing.
지난 달 정부는 은행이 단기외채를 상환할 수 있도록 1300억달러를 지원하겠다고 했다. 또한 건설사에 5조원을 사용하겠다고 했다.

“Given that [savings] rates are lower than inflation, you are actually losing money on deposits in the bank,” said Hank Morris, director of corporate financial advisory services at the consultants IRC in Seoul. “The smart money people, whether they are Korean or foreigners, are converting their won and sending it overseas.
금리를 물가상승률보다 낫게 책정한다면 외국인이든 한국인이든 똑똑한 사람은 돈을 해외로 보낼 것이다.

“The government has put emphasis on building strength into the economy. That’s a good story, and it’s fortunate that we are generally in a deflationary environment, with commodity prices coming down. But it’s hard to get around the fact that Korean exports are going to be shrinking and not expanding.”
정부는 건설업을 지원하겠다고 했다. 경기침체국면에서 이는 좋은 방안이다. 그러나 해외경기침체로 수출이 어려워지는 상황을 바꾸기는 어렵다.

Foreigners were net sellers of Won282.6bn ($212m) of Korean shares on Thursday, bringing their total net liquidation this year to more than Won33,500bn, according to Korea Exchange figures.
외국인들은 목요일에 주식을2826억원이나 팔았다. 연초부터 지금까지 외국인들이 판 주식은 모두 33조 5000억원이다.

The Kospi, the main index, closed 7.6 per cent lower at 1,092.22, in spite of news that Korea’s stock exchange would launch a $395m fund to invest in domestic shares. The Kospi has lost more than 40 per cent in value so far this year.
증권거래소가 3억 9500만 달러로 국내 주식에 투자하는 펀드를 만들겠다고 발표했지만 코스피는 전날보다 7.6%하락한 1092.22포인트로 마감했다. 코스피는 연초보다 40%나 하락했다.
Copyright The Financial Times Limited 2008