Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok said on the 2nd (local time) that preparations are underway to strengthen consultations with the United States regarding trade and currency issues and to swiftly formulate response measures to the mutual tariffs ahead of the U.S. mutual tariff announcement. The announcement is scheduled to take place at 5 a.m. the following day, Korean time.
Deputy Prime Minister Choi noted during a meeting with international financial market experts held in Jung-gu, Seoul, on the 2nd that "the U.S. mutual tariff announcement could cause short-term volatility in international financial markets."
Deputy Prime Minister Choi said, "We are paying attention to the global economic impact of the mutual tariffs, the U.S. economic and employment situation, and the direction of monetary policy thereafter," adding, "We are maintaining a 24-hour monitoring system to ensure that volatility in our financial and currency markets does not excessively expand."
Earlier, the Ministry of Economy and Finance had pursued measures for improving the currency market, such as simplifying the tax exemption procedures for government bond investments, resuming short selling in the stock market, and activating trading in extended hours in the currency market. Deputy Prime Minister Choi said, "We will continue to support the legislative efforts for value-up bills such as tax credits for corporations that expand shareholder returns, separate taxation on dividends, joint investor relations (IR) presentations for value-up outstanding companies, English disclosures, and preparations for inclusion in the World Government Bond Index (WGBI) in November without any setbacks."
Attendees at the meeting included Lee Ho-sung, CEO of Hana Bank; Choi Jae-jun, head of the Goldman Sachs Seoul branch; Park Seok-gil, economist at JP Morgan; Professor Park Jeong-jae from Yonsei University; Kim Mi-seop, CEO of Mirae Asset Securities; and Kim Se-wan, head of the Capital Market Research Institute.
Bank CEO Lee said, "Since the full implementation of the 'currency market structural improvement' last year, the average daily spot foreign exchange trading volume has expanded to about $12 billion, showing tangible results," and emphasized, "It is important for the government to steadily and consistently promote policies to facilitate nighttime transactions and the participation of foreign financial institutions."
Economist Park said, "It is positive that the tariffs imposed by the United States on South Korea are expected to be lower compared to those on China and Japan, and that the South Korean economy is likely to show signs of recovery as we move into the second half of this year. Given that private sector overseas investment is continuously increasing, efforts to attract foreign capital with this in mind are also important."
Deputy Prime Minister Choi expressed agreement that "to maintain external credibility, it is important for the economic and social systems to function as usual," and urged, "As the government is restructuring investment conditions to meet global standards, financial institutions should also be interested in attracting foreign investors and engaging in inbound business."