Kim So-young, Vice Chairperson of the Financial Services Commission, said, "The government is doing its best to proceed without a hitch in what it should and can do," and noted, "We will announce the policy financing supply plan for 2025 before the end of the year."
According to the Financial Services Commission on the 15th, Vice Chairperson Kim attended a meeting to review and communicate financial market issues held at the Bankers Association on the 13th. Eleven industry and financial experts, including securities firms, credit rating agencies, and academia, participated in the meeting.
Vice Chairperson Kim noted that while there is increased volatility in the financial market since the 12/3 martial law incident, it is not a structural issue, so stability is expected to gradually return. The funds related to the bond and short-term money market stabilization program also exceed 27 trillion won, and when the 2.8 trillion won bond collateralized securities (P-CBO) supply program begins in early 2025, the available liquidity is expected to increase further.
Vice Chairperson Kim stated, "If necessary, we will operate in line with the government's commitment to liquidity supply, including expanding the scale of the existing (market stabilization) program."
Chairperson Kim emphasized that responding to economic downward risks and structural issues after overcoming the shock is more important. He mentioned, "In a situation where many institutions are raising concerns about economic downward risks in 2025, overcoming these challenges and operating the macroeconomy and financial markets stably is a priority task," adding that it is also important to lay the groundwork for enhancing industrial competitiveness for sustainable growth.
Meeting attendees also agreed that the financial markets are finding stability. The KOSPI index has recovered to the level seen at the end of November, exchange rate volatility has decreased, and there are no signs of foreign capital outflow. They advised that more focus should be placed on essential issues such as stable management of national debt, recovery of domestic demand, and responding to demographic changes.
By sector, the semiconductor industry is expected to maintain a healthy flow in 2025. While competition with Chinese memory semiconductors intensifies and there are risks such as the possibility of the Trump administration in the U.S. retracting semiconductor subsidies, Korean corporations have technological competitiveness in the high bandwidth memory (HBM) sector, and recovery in demand for general-purpose products is also anticipated.
The petrochemical industry has also faced fluctuations due to China's expanding self-sufficiency rate and expansions in Middle Eastern countries, but evaluations suggest opportunities are opening up in new markets like India and Southeast Asia.
Experts advised the government to quickly prepare policy support that can respond to the tariff policies of the second Trump administration and industrial competition with China. They emphasized that the economic idle funds should flow into productive areas such as advanced industries or ventures, rather than into unproductive sectors like real estate.
Vice Chairperson Kim said, "We are thinking a lot about what role finance can play to enhance industrial competitiveness," and added, "We will fully reflect the opinions presented at the meeting in policy decision-making."