FSS Raises Crisis Levels for Stock and Bond Markets to 'Severe' and 'Alert'

[Asia Economy Reporter Kim Hyo-jin] The Financial Supervisory Service (FSS) has upgraded the crisis evaluation ratings for the stock market and bond market to 'Severe' and 'Caution,' respectively.

On the 19th afternoon, the FSS announced that it made this decision during a financial situation review meeting chaired by Governor Yoon Seok-heon, attended by executives and heads of departments related to financial markets.

The FSS explained, "Due to continued high volatility in the domestic securities and foreign exchange markets and signs of liquidity tightening in the corporate bond market, the crisis evaluation ratings for the stock market and bond market have been upgraded."

Governor Yoon ordered the prioritization of seven tasks in consultation with related agencies, focusing on strengthening crisis management amid the prolonged COVID-19 pandemic, mitigating market volatility, and preventing credit crunches.

Accordingly, the FSS plans to check the status and risk factors of major financial investment product markets, strengthen monitoring of the corporate bond and short-term funding markets, and conduct focused inspections on the risk factors of KOSDAQ convertible bonds.

The FSS will also undertake crisis evaluation and response in the capital market according to the emergency response plan and conduct focused analysis on foreign exchange-related risk factors in the capital market sector.

Additionally, the FSS will closely monitor the implementation status of financial support for small and medium-sized enterprises and small business owners.

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