Lee Bok-hyun, the head of the Financial Supervisory Service, said regarding the U.S. Federal Reserve's decision to freeze interest rates, "The downward risks to the U.S. economy are increasing, and the challenges faced by domestic industries sensitive to the economy and exports are intensifying."
On the morning of the 20th, Lee held a financial situation assessment meeting and noted, "While the Federal Reserve has frozen rates as the market expected, the growth outlook is being downgraded and the inflation outlook is being upgraded." Lee added, "If uncertainties in trade policy are compounded starting with the trade practices report and mutual tariffs announcement on the 2nd of next month, the domestic and international economic and market situation could become even more difficult."
He emphasized, "We must comprehensively monitor and manage changes in the global economy, finance, policy, and the Homeplus situation, as well as trends in the domestic market, to respond to changes in the global competitive environment and sectoral economies," and urged that "corporations should be actively supported to ensure that the funds needed for innovative growth, restructuring, and overcoming recession are smoothly procured through the capital market."
Lee urged close monitoring of the overall market risks, noting that market volatility is increasing in some emerging countries, including Turkey and Indonesia.
He also stated that in regard to corporations' capital increases, the plan is to ensure no disruption to funding schedules through careful reviews and by actively communicating with corporations to provide accurate information to investors.
He stated that efforts to enhance shareholder protection and improve the short-selling system will be consistently pursued to establish fair and efficient market conditions.
Regarding the corporate rehabilitation of Homeplus, Lee noted, "I will thoroughly manage market risks to avoid any disruptions to the funding and investment activities of corporations due to vague anxieties," and added, "I will closely monitor to ensure that temporary funding shortages for small and medium-sized enterprises and small business owners do not arise due to economic slowdown or the Homeplus situation, and I will respond in cooperation with relevant agencies."