The Deputy Prime Minister and Minister of Economy and Finance, Choi Sang-mok, held the emergency macroeconomic and financial issue meeting (F4 meeting) for three consecutive days to assess the situation in the financial and foreign exchange markets. The fiscal and monetary authorities emphasized that they would promptly implement all market stabilization measures, including liquidity provision, to ease the concerns of foreign investors due to the state of emergency.
According to the Ministry of Economy and Finance, Deputy Prime Minister Choi convened the F4 meeting at 7 AM on the 5th at the Federation of Banks to review trends in the financial and foreign exchange markets. The F4 meeting is a gathering of key figures in fiscal and monetary authorities, including the Deputy Prime Minister, Bank of Korea Governor Lee Chang-yong, Financial Services Commission Chairman Kim Byeong-hwan, and Financial Supervisory Service Governor Lee Bok-hyun.
The participants assessed that President Yoon Suk-yeol’s state of emergency declaration had a limited impact on the financial and foreign exchange markets, but to minimize potential market volatility in the future, they stressed the deployment of all available means. As an immediate response, they decided to operate an ‘Economic and Financial Monitoring Task Force’ within the government for 24-hour monitoring of the overall financial and real economy until market normalization. Additionally, a Securities Market Stabilization Fund of up to 10 trillion won will be prepared for immediate activation, and a Bond Market Stabilization Fund capable of purchasing corporate bonds and commercial papers (CP) is also planned to be introduced to the market, with an approximate size of 40 trillion won. The Bank of Korea also announced that it would provide unlimited liquidity through repurchase agreements (RP) and, if necessary, supply foreign currency liquidity through outright purchases of government bonds and foreign currency RP purchases.