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SEOUL, Oct 1 Asia Pulse - The South Korean government is planning to announce measures to reduce the fallout of currency option derivatives that are threatening many small- and medium-size enterprises (SMEs), a senior policymaker said Tuesday.
Vice Knowledge Economy Minister Rim Che-min said in a parliament committee meeting that the government is in the process of finding a solution to investments made in so-called knock-in, knock-out (KIKO) hedging.
"The aim is to prevent exporters that are otherwise doing well from going bankrupt due to losses incurred by unexpected turns in the won-dollar exchange rate," he told lawmakers.
KIKO, introduced late last year, was designed to reduce risks caused by a rise in the Korean won versus the dollar, but has since become ...