With the likelihood of a U.S. benchmark rate hike rising and global market tension mounting amid climbing international oil prices, the Expanded Macro-Economy and Finance Meeting (F4) will be held on the 17th.
According to financial authorities on the 13th, the upcoming F4 meeting comes about two months after supplemental measures were drawn up at the previous meeting for single-stock leveraged exchange-traded funds (ETFs) tied to Samsung Electronics and SK hynix.
The meeting is chaired by the deputy prime minister for the economy and attended by the chair of the Financial Services Commission, the Bank of Korea governor, and the Financial Supervisory Service chief. If Deputy Prime Minister for the Economy and Minister nominee Lee Hyeong-il passes the confirmation hearing set for the 15th, Lee is expected to lead the F4 meeting.
The meeting on the 17th will take place on the day the U.S. Federal Reserve decides its benchmark rate. Accordingly, F4 participants are expected to analyze rate-hike moves by major economies and the resulting impact on Korea's macroeconomy and financial markets.
According to the Chicago Mercantile Exchange (CME) FedWatch, which gauges volatility in the Fed's rate outlook, there is an 87% chance the Fed will raise its benchmark rate in September. As international oil prices have surged past $100 per barrel amid escalating tensions between the United States and Iran, intensifying inflation pressure, markets largely expect the Fed to lift rates.
The Financial Services Commission plans to summon household loan managers from the five major banks (KB Kookmin, Shinhan, Hana, Woori, NongHyup) on the 15th for a working-level review of household debt. If the Fed raises its benchmark rate on the 17th, the Financial Supervisory Service plans to hold a meeting, chaired by its chief, to review financial conditions.