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Photo courtesy of the Financial Services Commission |
[Alpha Biz= Kim Jisun] South Korea’s Financial Services Commission (FSC) convened an emergency financial market review meeting on Sunday to assess potential risks stemming from the escalating situation in the Middle East and agreed to swiftly deploy prearranged market stabilization measures, including a market support program totaling more than KRW 100 trillion, if needed.
The FSC said it would form an emergency response task force in coordination with related institutions to respond promptly to market volatility.
The meeting, held at the Government Complex Seoul on Sunday afternoon, focused on the potential impact of recent U.S. and Israeli airstrikes on Iran on global and domestic economic and financial markets, as well as policy response measures.
FSC Chairman Lee Eok-won stressed that developments in the Middle East remain highly uncertain and could pose risks to South Korea’s financial markets and real economy if the situation becomes prolonged. He called for heightened vigilance and close monitoring of economic and financial conditions.
Lee instructed the immediate launch of an emergency financial market response team, led by the FSC Secretary-General and joined by relevant institutions including the Ministry of Economy and Finance, the Bank of Korea, the Financial Supervisory Service, and the International Finance Center. The task force will share information closely among agencies and conduct 24-hour monitoring of financial market developments.
Given that South Korea’s domestic financial markets will be closed on Monday, Lee also instructed authorities to closely track movements in global markets across Asia, Europe, and the United States, and to convene additional emergency meetings in a timely manner if necessary.
He further emphasized the need to provide full support to the real economy, particularly to minimize potential damage to small and medium-sized enterprises that may be vulnerable to disruptions related to the Middle East situation, including the possible closure of the Strait of Hormuz.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
