South Korean regulators will examine speculative South Korean won trading and require banks to strengthen risk management

The Korea Financial Supervisory Authority said tensions in the Middle East and market expectations for a Fed rate hike have driven fluctuations in the Korean won exchange rate. The Korea Financial Supervisory Authority has asked banks to strengthen risk management measures in response to market turmoil.<br /> In addition, the Korea Financial Supervisory Authority and the Bank of Korea will conduct inspections on speculative South Korean won transactions. The Korea Financial Supervisory Authority emphasized that excessive fluctuations in the foreign exchange market and unilateral positions are not advisable, and said that South Korea's economic fundamentals and external credibility remain solid.