Kim Yong-beom, Deputy Minister of Economy and Finance, "For the Stock Market to Keep Rising, Support from Real Economy Recovery Is Necessary"

Presiding Over the Macroeconomic and Financial Meeting

"Managing expanded liquidity to prevent undermining financial stability is the immediate task for financial authorities"
"Comprehensive efforts will be made to channel liquidity into the productive sector, such as the Korean New Deal"
"Large corporations are also urged to actively engage in productive investments"

[Asia Economy Reporter Joo Sang-don] Kim Yong-beom, First Vice Minister of the Ministry of Economy and Finance, stated on the 7th, "For the stable upward trend of the financial market to continue, the success of COVID-19 containment measures that meet market participants' expectations and the recovery of the real economy must be supported."

Vice Minister Kim presided over the Macroeconomic and Financial Meeting at the Seoul Banking Hall on the same day, saying, "Since the beginning of the new year, the KOSPI has been hitting record highs, and surpassing 3,000 points is becoming visible."

He added, "With the inauguration of the new U.S. administration, investment expansion in eco-friendly and new industry sectors is expected to accelerate global demand recovery. Regarding our main export item, semiconductors, the market expects the industry conditions to improve as deferred demand is combined with new demand."

He urged special caution regarding the possibility of increased volatility in the financial market. Vice Minister Kim emphasized, "Careful management to ensure that the expanded liquidity during the crisis response does not undermine stability in the financial sector is a challenge facing macroeconomic and financial authorities this year. We will pay close attention to risk factors surrounding the financial market and the possibility of increased market volatility, and do our best to achieve a rapid and strong economic recovery."

Vice Minister Kim plans to channel the increased liquidity from the crisis response into the productive sector. He said, "(Market) liquidity will flow into productive sectors such as the Korean New Deal, serving as a foundation for a rapid and strong economic recovery and a leap toward a leading economy. We will make comprehensive efforts to discover productive investment destinations and enhance incentives for productive investment." He also urged, "Large corporations and institutional investors are expected to actively engage in productive investments for future growth engines and sustainable development, in line with the government's efforts to open funding channels to the productive sector."

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