Kim Yong-beom, Vice Minister: "'Macroeconomic Financial Stability Team' Established... Checking Real Economy and Financial Markets"

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 23rd, "To quickly assess system risks across domestic and international markets and financial sectors, we have newly established a 'Macro-Financial Stability Team' within the Ministry of Economy and Finance and will preside over daily market monitoring meetings."

On the same day, Vice Minister Kim convened an emergency meeting of departments related to macroeconomic finance at the Government Seoul Office to review the real economy and financial market impacts related to the novel coronavirus infection (COVID-19), and made this announcement.

Vice Minister Kim explained, "As COVID-19 has spread extensively to the US, Europe, and other regions, concerns about a global economic recession have increased, and financial market volatility has expanded. With major countries' travel restrictions to prevent further spread of the infectious disease being fully implemented, the global real economy is expected to contract more severely than initially anticipated."

He continued, "Despite aggressive market stabilization measures such as the US Federal Reserve's large-scale bond purchases, competition to secure global liquidity is intensifying, as seen in the widening bond spreads in international financial markets. Market instability continues, particularly in emerging countries with large external debt and commodity-exporting countries, where currency depreciation and massive capital outflows are occurring."

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