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SEOUL — South Korea’s foreign exchange authorities on Monday issued a verbal intervention over excessive volatility in the foreign exchange market.

The Ministry of Economy and Finance and the Bank of Korea (BOK) said in a joint statement that the FX authorities are closely monitoring the possibility of herd behavior, with caution, in the process of the local currency’s expanded volatility, caused by internal and external factors.

It marked the first verbal intervention by the authorities in one and a half years since April last year when the won versus US dollar exchange rate came closer to 1,400 won per dollar amid geopolitical tensions in the Middle East.

ALSO READ: S. Korea issues verbal intervention over forex market volatility

The won versus dollar exchange rate started at 1,430.0 won, up 9.0 won compared to the previous trading day.

The rate soared to 1,434.0 won during market hours, recording the highest in five months since early May. 

By Kwanwoo Jun

  LG Electronics guided for quarterly operating profit to fall 8.4%--a smaller decline than market consensus, thanks to its key affiliates' solid performance despite tough business conditions. 

  While challenges remain from higher U.S. tariffs and a delayed recovery in global demand, its home-appliance segment maintained its competitiveness and continued to be the market leader, while its vehicle-component segment achieved record profitability, the South Korean company said Monday. 

  The consumer-electronics giant said in a preliminary earnings report that its operating profit could come in at 688.90 billion won, equivalent to $481.9 million, for the July-September period, compared with 751.90 billion won a year earlier. The projection was above a FactSet-compiled consensus estimate of 618.79 billion won. 

  Revenue is expected to have fallen 1.4% to 21.875 trillion won, LG Electronics said, also beating analysts' estimate. 

  Shares of the company rose 2% after the better-than-expected guidance, trimming its year-to-date losses to below 4%. 

  The earnings projection came as LG Electronics recently raised $1.3 billion by selling a 15% stake in its Indian unit, LG Electronics India, in an initial public offering. The company said it expects the proceeds to provide significant funding to accelerate business structure improvements and future growth initiatives. The Indian unit will begin trading Tuesday. 

  LG Electronics said it would continue its push to grow new businesses, including its heating, ventilation and air-conditioning services as well as non-hardware platforms such as appliance subscriptions and online services. 

  Analysts at Daiwa Capital said in a recent note that LG Electronics is facing business uncertainties in the second half of the year, citing a larger-than-expected U.S. tariff impact and increasing competition in the television business. The Korean company on Monday said its media and entertainment segment, which includes its TV business, experienced higher marketing costs amid intensifying global competition. 

  The company is scheduled to release its full quarterly results later this month. 

  Separately, LG Energy Solution, an electric-vehicle battery maker affiliated with the parent LG Group conglomerate, earlier forecast a 34% increase in third-quarter operating profit, surpassing market expectations. 

  The battery unit's projection of 601.30 billion won, which includes an estimated 365.50 billion won U.S. tax credit, beat a FactSet-compiled consensus forecast of 518.29 billion won. 

  Write to Kwanwoo Jun at kwanwoo.jun@wsj.com 

  (END) Dow Jones Newswires

  October 13, 2025 01:20 ET (05:20 GMT)
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