I Bok-hyun, the head of the Financial Supervisory Service, ordered a precise analysis of the level of damage by industry related to the U.S. tariffs and to be prepared to implement market stabilization measures in a timely manner if necessary.
On the 8th, Director I held a meeting titled "U.S. Tariff Response Inspection Meeting" at the Financial Supervisory Service in Yeouido, Seoul, and requested all-out efforts to analyze damage by industry, stabilize the financial market, and manage the soundness of the financial sector through the activation of emergency response systems within the organization. The Financial Supervisory Service plans to hold meetings related to tariffs every week, chaired by the director, and will establish a total of five teams (General Team, Market Inspection Team, Industry Analysis Team 1, Industry Analysis Team 2, Regional Response Team) to carry out related practical work.
Director I diagnosed that concerns about a global economic slowdown have expanded immediately after the announcement of tariffs and that the possibility of trade conflict escalation is emerging as China has initiated immediate retaliatory measures, significantly increasing volatility and uncertainty in global and domestic financial markets. He said, "As the impact and ripple effects on our industries are very complex due to simultaneous differential tariffs on numerous countries, we must grasp the production movement paths of export goods to the greatest extent possible, analyze the level of damage precisely, and examine the impact on export corporations as well as small- and medium-sized partner companies and devise necessary response measures with related institutions." He added, "We must also closely inspect the trends in corporate funding handling and the soundness of corporate loans within the financial sector following the imposition of tariffs."
Director I ordered, "Concerns about investment losses may increase, particularly among individual investors in products linked to stock prices (ELS) and leveraged products, due to the sharp decline in stock prices, so please proactively respond by inspecting the status of high-risk product sales to ensure consumer protection."
Director I also requested the exploration of reasonable regulatory improvements concerning the financial sector. Options mentioned include providing capital regulation-related incentives to ensure that banks can support corporations effectively, and allowing sufficient preparation time for insurance companies to adapt to changes resulting from system improvements, such as capital regulation rationalization and insurance liability evaluation standards.
Director I mentioned the recent computer system failures at the Korea Exchange and Kiwoom Securities, stating, "Concerns and distrust regarding the stability of capital market transactions may be amplified," and urged for thorough inspections and emergency responses. He also stated, "Please ensure that compensation for investor losses can be carried out swiftly in the event of an incident."