S. Korea's big businesses want stronger won, survey shows

SEOUL, March 11 (Yonhap) -- South Korea's top 20 business conglomerates want the
won currency to strengthen against the U.S. dollar this year to offset expensive
import prices, a private survey showed Wednesday.
The conglomerates, including Samsung, Hyundai Motor and LG, hoped the won to
average 1,100 to 1,300 per the dollar this year, compared with Tuesday's close of
1510.5, the Federation of Korean Industries said in the survey.
"The government needs to intervene into the foreign-exchange market to guard
against excessive currency moves," the federation said.
The won's weakness is a double-edged sword for South Korea's export-dependent
economy.
The approximate 15-percent decline in the won this year helps Samsung Electronics
Co. and Hyundai Motor Co. sell their products at cheaper prices overseas and
fatten profits when proceeds are converted into won.
However, if the won drops too fast, as it has this year, it backfires on
exporters as it makes raw materials more expensive and increases the value of
their dollar-term debts.
The won traded at 1493 against the dollar at 9:13 a.m. in Seoul, marking an
advance for the fourth consecutive trading day, as the dollar weakens and
expectations grow that South Korea's current account surplus this year may exceed
the government's initial forecast.
(END)