It came out of 2008, when Korean banks had piled up short-term dollar debt and the currency spiked as that money left all at once. The point is to discourage excessive short-maturity borrowing. Waiving it does the reverse: banks can bring dollars in from abroad more cheaply, which adds to domestic dollar supply.
Watch 1
Predictions & track record (1)
Awaiting gradingThe won came back 115 against the dollar in a month, and not because the dollar weakenedScore on August equity flows and the rate. If foreign investors return to heavy net selling and the rate still holds below 1,450 at month end, count it as the surplus coming through, and if the rate slides back above 1,500 as selling resumes, count it as a lull.