Vice Minister of Economy: "COVID-19 Emergency Economic Situation... Financial and Real Economy Must Be Monitored 24 Hours"

Kim Yong-beom, the 1st Vice Minister of the Ministry of Economy and Finance, is attending and speaking at a joint briefing held on the 8th at the Government Seoul Office regarding the 'Supplementary Measures for Stabilizing Mask Supply.' Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Kim Hyunjung] Kim Yongbeom, the 1st Vice Minister of Strategy and Finance, emphasized to executives related to macroeconomic finance that the current situation is an 'emergency economic situation' due to the novel coronavirus infection (COVID-19) and ordered 24-hour monitoring of domestic and international financial markets and the real economy.

On the afternoon of the 8th, Vice Minister Kim convened an emergency meeting of departments related to macroeconomic finance at the Government Seoul Office to hold a macroeconomic finance inspection meeting, stating this. Officials from related departments such as the Treasury Market Division, Economic Analysis Division, International Finance Division, Foreign Currency Fund Division, and Government Bond Division of the Ministry of Strategy and Finance attended the meeting to check the impact of COVID-19 on the domestic and international real economy and financial markets.

At the meeting, Vice Minister Kim said, "Depending on whether the COVID-19 situation further spreads and prolongs, the impact on global financial markets and the real economy is expected to continue," and emphasized, "Under a solid cooperative system with related ministries and agencies as well as major countries and international organizations, please monitor domestic and international financial markets and the real economy thoroughly 24 hours a day."

The Ministry of Strategy and Finance recently diagnosed that as COVID-19 rapidly spreads worldwide, concerns about a global economic slowdown due to shocks to the global value chain (GVC) are increasing. In fact, the IMF, OECD, international credit rating agencies, and overseas investment banks have successively downgraded their global economic growth forecasts for this year, and volatility in global financial markets is also increasing.

Despite the Federal Reserve's sudden interest rate cut on the 3rd and policy coordination moves by other countries, major stock markets have been fluctuating repeatedly, and due to a preference for safe assets, U.S. Treasury yields are hitting record lows.

The domestic market is also increasing volatility. The stock market continues a volatile trend influenced by fluctuations in major countries' stock markets, and foreign investors have shown net selling due to concerns about economic slowdown and forecasts of worsening domestic corporate earnings. The won-dollar exchange rate has repeatedly risen and fallen depending on the value fluctuations of the dollar, and overall market volatility has increased, according to the Ministry of Strategy and Finance.

Meanwhile, Vice Minister Kim plans to re-examine the recent domestic and international economic and financial situation related to COVID-19 and available policy measures together with related ministries, the Financial Services Commission, the Bank of Korea, the Financial Supervisory Service, and the International Finance Center at the macroeconomic finance meeting scheduled for the 10th.

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