Kim Yong-beom, Vice Minister, "Implement Market Stabilization Measures Swiftly and Firmly with a Serious Awareness"

Kim Yong-beom, 1st Vice Minister of Strategy and Finance (Photo by Yonhap News)

[Asia Economy Reporter Kwangho Lee] Kim Yong-beom, the 1st Vice Minister of the Ministry of Economy and Finance, said on the 13th regarding the rising instability in domestic and international financial markets due to the spread of the novel coronavirus infection (COVID-19), "The government holds a serious awareness equivalent to a crisis and is thoroughly inspecting each sector of the financial system. We will swiftly and decisively implement market stabilization measures if necessary through close communication with the private sector."

On the same day, Vice Minister Kim held a private expert meeting at the Seoul Conference Center and stated, "Depending on the future development of the COVID-19 situation, the negative ripple effects on the economy and the volatility of financial markets may continue for a considerable period."

Vice Minister Kim diagnosed, "The recent rapid expansion of financial market volatility stems from concerns about the global spread of COVID-19 and its serious impact on the real economy. These concerns have been preemptively reflected in the financial markets, causing a sharp adjustment in asset values, and the fear of COVID-19 infection and contraction of investor sentiment are amplifying financial market instability."

He continued, "As the recent financial market instability coincides with the spread route of COVID-19, transferring and expanding from Asia to Europe and the United States, the domestic financial market has shown relative resilience. However, if the global financial market shock continues, it is not possible to exclude the risk that it could place a significant burden on the financial system."

The attendees agreed that since the COVID-19 situation is having a serious impact on the economy and finance, close communication between the private sector and the government is important to overcome this crisis. They exchanged candid opinions on the impact and difficulties in each financial sector.

Participants in the meeting included HSBC Securities, SSBT, Samsung Life Insurance, Mirae Asset Daewoo Securities, Kookmin Bank, Samsung Electronics, Hyundai Motor Company, Export-Import Bank of Korea, Korea Investment Corporation, and the International Finance Center.

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