National Assembly Speaker Woo Won-sik met with Bank of Korea Governor Lee Chang-yong and expressed concern over the worsening economic situation since the Dec. 3 martial law, stating that efforts will be made to support the stabilization of the financial market. Governor Lee explained that while the economy is finding stability, it's not yet time to let down the guard.
Speaker Woo met with Governor Lee at the Bank of Korea on the 19th, stating, “Political uncertainty has been greatly maximized due to the unprecedented situation of martial law declaration and the impeachment state,” and added, “This has caused a significant shock to the economy and financial market.”
He noted, “We are facing complex challenges of sluggish domestic demand, slowing exports, and increasing volatility in the financial market,” and stated, “Uncertainty has heightened due to the martial law impeachment situation, and volatility in the financial and foreign exchange markets is also increasing. With the outflow of foreign capital or the contraction of corporate investment, the stability and growth potential of our economy can be greatly threatened.”
He further urged the Bank of Korea to make the best use of the various policy tools and expertise at its disposal to stabilize South Korea’s financial market. He emphasized that proactive measures by financial authorities are more essential than anything for household debt stabilization, market publicness, and export recovery support, while also stressing the necessity of appropriate policy coordination for domestic demand activation and economic boosting during times like these.
Governor Lee responded that efforts should be made to enhance trust in the economic system. He stated, “Although the domestic financial and foreign exchange markets are gradually finding stability, it's not yet a stage to be relieved, and we cannot let down our guard,” adding that “If economic policies are implemented separately from the political process, trust that the economic system will function normally will be built.”
He stated, “We will make considerable efforts to enhance internal and external trust in our economic system while pursuing major economic policies in the National Assembly,” and added, “Particularly, we will do our utmost to overcome difficult situations by working with the government to take market stabilization measures and strengthen external communication to prevent the expansion of volatility in the financial and foreign exchange markets.”