Chairperson Lee Eog-weon of the Financial Services Commission said uncertainty stemming from the Middle East is continuing after the failure to reach a cease-fire, and urged that "the bond and money market stabilization programs be expanded immediately if needed, as expansion plans for the support scale have already been prepared."
The Financial Services Commission said on the morning of the 13th it convened the "financial sector emergency response task force (TF)" chaired by Lee to review financial market risk factors in preparation for a possible prolongation of the Middle East crisis.
The meeting was arranged to review financial market risk factors and to solidify a pan-government emergency response system amid a renewed spread of geopolitical risk following the collapse of a cease-fire agreement related to the Middle East war.
Lee said, "With the failure to reach a cease-fire agreement, uncertainty surrounding Korea's economy remains grave," adding, "Do not let down your guard until there is a clear declaration of the end of the war, and strictly maintain the emergency response system currently in operation."
Lee asked the market team to closely monitor market trends around the clock and to implement market stabilization measures immediately if volatility increases. As expansion plans for the support scale of the bond and money market stabilization programs have already been prepared, they will be expanded immediately if needed.
Lee also called for active execution of the "policy finance support program" for corporations suffering damage. Lee said, "Closely monitor the supply of new funds by the private financial sector, totaling '53 trillion won + alpha (α),' and request an expansion of the support scale and targets if needed."
To the financial industry team, Lee asked for preemptive responses through stress tests that assume a worst-case scenario so that risk factors in the real economy do not spill over into the financial industry.
Lee said, "Concentrate all capabilities across the financial sector so market participants can trust the government's resolve to respond."