Key facts
- South Korea has begun joint inspections of major foreign-exchange banks.
- This is the first time these inspections have occurred in 14 years.
- The move is an escalation of efforts to defend the South Korean won.
- Authorities are targeting speculative trading that may be destabilizing the currency.
South Korea has intensified its efforts to stabilize the national currency, the won, by initiating joint inspections of major foreign-exchange banks. This action, the first of its kind in 14 years, signifies a significant escalation from previous warnings and emergency meetings aimed at curbing speculative trading that authorities believe is destabilizing the won. The inspections are part of a broader strategy to defend the currency's value in the foreign exchange market.