Lee Eok-won, Chairman of the Financial Services Commission, held a financial market situation assessment meeting today (15th) with related organizations such as the Financial Supervisory Service and the Korea Institute of Finance to discuss this year’s evaluations of domestic and international economic and financial markets and future prospects.
Chairman Lee diagnosed that “recently, the treasury bond interest rates are showing an upward trend, and the volatility in the foreign exchange market is expanding, leading to increased caution towards the domestic financial market.”
The meeting participants also agreed on the need to manage market expectations regarding the recent stabilization of the rising exchange rate and emphasized efforts to resolve imbalances in foreign currency supply and demand and the importance of improving economic fundamentals.
Chairman Lee stated, “Our economy has sufficient crisis response capabilities,” adding that “considering the sound financial institutions, the world’s 9th largest foreign exchange reserves, and low CDS premiums, we have substantial resilience and crisis management policy capabilities.”
He continued, “In preparation for the possible expansion of volatility within the financial market, there is a continuous need for the safety net role,” explaining that “the current market stabilization program will continue to be operated into next year.”
In line with this, the Financial Services Commission and policy financial institutions plan to supply up to 37.6 trillion won in liquidity to stabilize the bond and short-term money markets next year.
Chairman Lee emphasized, “As market volatility could expand in the future, we will closely cooperate with relevant agencies to monitor the market situation strictly and will implement market stabilization measures boldly and proactively if necessary.”
He also mentioned the principle, “Crises occur repeatedly but always unexpectedly,” stating the need for preemptive preparation against unforeseen risk factors.
Furthermore, he added, “We will accelerate the ‘three major financial transformations’ centered on productive finance, inclusive finance, and trustworthy finance,” and for this, “financial market stability must be supported.”