With geopolitical tensions in the Middle East rising, financial authorities said on the 1st they can immediately implement a 100 trillion won market stabilization program if needed.
Lee Eog-weon, chairperson of the Financial Services Commission (FSC), held an emergency meeting to review financial market conditions at Government Complex Seoul on the day, examined the domestic and global economic and financial market impact of U.S. and Israeli airstrikes on Iran, and discussed the corresponding response direction.
The chairperson emphasized, "The future trajectory of the situation in the Middle East is uncertain," and "If the situation drags on, it could affect the domestic financial market and the real economy, so we must maintain heightened vigilance and review conditions in the domestic economy and financial market."
The chairperson ordered the immediate activation of an "emergency financial market task force," headed by the Financial Services Commission (FSC) Secretary-General and joined by related institutions such as the Ministry of Economy and Finance, the Bank of Korea, the Financial Supervisory Service, and the International Finance Center, and instructed 24-hour monitoring of financial market conditions.
The chairperson also directed close monitoring of global market trends in Asia, Europe, and the United States on the 2nd, when the domestic financial market will be closed.
The Financial Services Commission (FSC), together with the Financial Supervisory Service (FSS) and other related financial institutions, plans to convene emergency market condition review meetings in a timely manner. It also instructed the swift implementation, if needed, of already prepared financial market stabilization measures (contingency plan), including a market stabilization program of "100 trillion won + α."
In addition, the chairperson asked for thorough support for the real economy to minimize damage to small and midsize enterprises vulnerable to the impact of the Middle East situation, such as the potential closure of the Strait of Hormuz.