Koo Yun-cheol, Deputy Prime Minister for the economy and Minister of Strategy and Finance, and Bank of Korea Governor Shin Hyun-song, among other economic chiefs, said on the 18th that "major countries are moving to raise interest rates," adding, "We will launch an integrated risk monitoring system that covers not only the stock, bond, and foreign exchange markets but also the real estate market."
Deputy Prime Minister Koo held a joint interagency "expanded macroeconomic and financial meeting" at 7:40 a.m. that day. The meeting was convened to review trends in the financial and foreign exchange markets following the U.S. Federal Reserve's decision to hold its benchmark interest rate. Bank of Korea Governor Shin, Financial Services Commission (FSC) Chairman Lee Eog-weon, and Financial Supervisory Service Governor Lee Chan-jin attended.
Participants said, "At the first meeting since Kevin Warsh took office as Fed chair, the Fed's resolve to stabilize prices was emphasized, suggesting U.S. monetary policy could proceed in a more hawkish direction." They noted the likelihood of future rate hikes has increased. In response, they decided to prepare measures to ease the burden on vulnerable institutional sectors from rising domestic market interest rates and to support vulnerable borrowers.
They also said that, given the growing interconnection across financial markets, they decided to fully activate an integrated risk monitoring system that encompasses not only the stock, bond, and foreign exchange markets but also the real estate market.