Financial Authorities "Thoroughly Prepared for All Situations Related to US-Iran Conflict"

Sohn Byung-doo, Vice Chairman of the Financial Services Commission (second from the left), is delivering opening remarks while presiding over the Financial Market Division meeting at the Government Seoul Office on the 9th.

[Asia Economy Reporter Kim Hyo-jin] On the 9th, financial authorities expressed their stance regarding concerns over rising uncertainty in the domestic financial market due to the conflict between the United States and Iran, stating that they are "thoroughly prepared for all possible situations."

Son Byung-doo, Vice Chairman of the Financial Services Commission, urged at the Financial Market Team meeting held at the Government Seoul Office on the same day, "It is necessary to calmly observe the situation and make careful judgments rather than succumbing to excessive anxiety." Earlier, after President Donald Trump expressed in a national address that he "does not want to use military force against Iran," the U.S. stock market closed higher, easing the sense of crisis.

Vice Chairman Son assessed, "The external soundness of our economy is solid, with net external claims and foreign exchange reserves reaching record highs."

He added, "Considering that South Korea's exposure to Iran is minimal and the proportion of Iranian funds in the domestic securities market is very small, there is little concern about a sudden capital outflow or deterioration in the soundness and profitability of our financial institutions in the future."

However, he pointed out that if the situation prolongs and instability in the Middle East continues, the financial market could be indirectly affected through real economic channels such as rising oil prices and decreased exports. Vice Chairman Son said, "We will closely analyze trends in domestic and international financial markets, monitor exposure to the Middle East and foreign securities capital inflows and outflows, and take prompt market stabilization measures should financial market instability occur."

The government formed a joint response team among related ministries the previous day to respond to the increased uncertainty caused by the clash between the U.S. and Iran, and as a follow-up measure, held a meeting of the Financial Market Team, one of the five task forces within the joint response team, on the same day.

The Financial Market Team includes Vice Chairman Son as the head, along with working-level officials from the Financial Services Commission, Ministry of Economy and Finance, Bank of Korea, Financial Supervisory Service, Korea International Finance Center, Korea Institute for International Economic Policy, Daishin Securities, and other public and private related organizations.

This content was produced with the assistance of AI translation services.