Finance Minister Koo Yun-cheol says the government is consulting with major players in the forex market to protect the won-dollar exchange rate from uncertainty and instability.

Koo made the statement on Wednesday during a news conference at the government complex in Sejong City as the won's value drops against the greenback.

The minister attributed the depreciation to a dollar shortage driven by factors including large overseas outflows.

Koo said it was hard to pinpoint the weakest won level that South Korea's economy and prices could withstand and that the market ultimately sets exchange rates.

He added that the finance ministry is continuously monitoring the exchange rate to maintain stability.

The minister said that of the 350 billion U.S. dollars South Korea has pledged to invest in the U.S. economy, the 200 billion earmarked for direct investment should be handled through a dedicated fund, which would be most feasibly handled by an entity other than the finance ministry.