Bank of Korea governor nominee Shin Hyun-song stated that U.S. dollar liquidity in South Korea remains robust despite recent fluctuations in the won. Speaking ahead of his confirmation hearing, he highlighted strong foreign inflows into local bonds, particularly via foreign-exchange swaps, as key factors stabilizing dollar funding conditions. The central bank official emphasized that external financial risks appear contained, with no immediate threats to systemic stability.

The comments come as South Korea’s currency has experienced heightened volatility, driven by global interest rate shifts and geopolitical tensions. Shin noted that foreign capital continues to flow into domestic fixed-income markets, supported by competitive yields and the Bank of Korea’s proactive liquidity management. These inflows have offset downward pressure on the won, preventing sharp corrections in currency markets.

While acknowledging persistent uncertainties, Shin stressed that South Korea’s financial system remains resilient, with sufficient dollar liquidity to support economic activity. His remarks aim to reassure investors and businesses amid concerns over capital flight and currency instability. The central bank’s ability to maintain stable funding conditions will be critical as the economy navigates external headwinds.

Market analysts suggest Shin’s stance reflects confidence in Korea’s current account surplus and foreign reserve adequacy. However, prolonged dollar shortages could resurface if capital flows reverse or global risk sentiment deteriorates. For now, the nominee’s assurance underscores efforts to project stability ahead of his potential leadership role at the central bank.