Hong Nam-ki, Deputy Prime Minister, "Korea's External Credibility and Soundness Remain Steady"

Foreign Correspondents Press Conference

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Son Seon-hee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said on the 28th, "Our country's external credibility and external soundness indicators are maintaining a steady appearance." He specifically noted that the credit default swap (CDS) premium, an indicator showing the risk of national default, "has approached the lowest level since the 2008 global financial crisis."

Deputy Prime Minister Hong made these remarks during a press conference with foreign reporters held in the afternoon at the Press Center in Jung-gu, Seoul. The CDS premium (5-year foreign currency bonds) has recently remained at the lowest level since 2008, around 20?22 basis points.

Hong said, "Although the outlook for 113 countries' sovereign credit ratings has been downgraded from last year to the present, our country has maintained an all-time high level with an AA rating (based on S&P and Moody's)." He added, "Foreign investment funds continue to show net inflows centered on bonds, and the issuance of foreign currency bonds by domestic financial institutions and companies is proceeding smoothly, indicating stable flows of foreign currency funds."

Furthermore, he added, "Foreign exchange reserves, which serve as an external safety net, stood at $446.1 billion at the end of last month, ranking 8th worldwide, and the foreign currency liquidity coverage ratio of domestic banks significantly exceeds regulatory standards, indicating good external soundness of financial institutions."

Deputy Prime Minister Hong emphasized, "The government will continue to thoroughly manage various risk factors, including external risks, to ensure there are no obstacles in the recovery and rebound process of our economy."

Regarding the resumption of short selling next month, Hong explained, "Partial resumption is scheduled from the 3rd of next month for KOSPI 200 and KOSDAQ 150 stocks," adding, "Measures have been prepared to address concerns of individual investors, such as strengthening penalties for illegal short selling, expanding supply of shares to individuals, and setting investment redemption limits."

On the hot issue of virtual assets, he emphasized, "We plan to closely monitor market conditions and intensify crackdowns on illegal activities through enhanced analysis of financial transaction information until June."

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