Kim So-young, vice chairperson of the Financial Services Commission, said that the transition of the global political and economic order initiated by the Trump administration in the U.S. is occurring rapidly and that it is highly likely to have a negative impact on the domestic real economy and investment sentiment.
Vice Chairperson Kim made this statement during a financial market issues review and communication meeting held on the 10th at the Bank Hall in Jung-gu, Seoul.
Experts attending the meeting noted that while the domestic financial market is generally stable, various variables such as the Trump administration's tariff policies and concerns over the slowdown in the U.S. economy remain, indicating the need to pay attention to potential market volatility.
Vice Chairperson Kim assessed that this uncertainty could 'in the short term' slow down the global real economy, raise inflationary pressures, and dampen risk asset investment sentiment.
He added that 'since our economy and financial markets are inevitably under such influences, we must closely examine global capital flows and market conditions so that changes in external environments do not act as destabilizing factors in the financial market,' and emphasized the need to continue efforts to stabilize the market with a high level of alertness.
Vice Chairperson Kim stated that efforts are needed to enhance the growth momentum of the domestic economy along with short-term economic defense. He noted, 'There are aspects where we still remain in successful industries and successful methods from the past,' and added, 'With the intensification of trade barriers due to tariffs and reshoring and the restructuring of supply chains, we are once again entering a transitional period, so we must prepare for the challenges of adapting to new conditions.'
He further remarked, 'Managing risks through assumption is the essential function of finance,' and emphasized that 'based on this function, there is a need to play a greater role in securing long-term growth power and advancing the industrial structure by sharing risks associated with adventurous investments and reallocating funds to productive sectors.'