Vice Minister of Economy and Finance: "Possibility of Increased Financial Market Volatility... Market Stabilization Measures if Necessary"

Lee Eokwon, 1st Vice Minister of Ministry of Economy and Finance, Holds Macroeconomic and Financial Review Meeting

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kwon Haeyoung] Lee Okwon, First Vice Minister of the Ministry of Economy and Finance, said on the 3rd, "Domestic and international financial markets are likely to show increased volatility in response to the Federal Open Market Committee (FOMC) of the United States, the European Central Bank (ECB)'s monetary policy trends, and changes in the situation in Ukraine."

At the macroeconomic and financial review meeting held at 8 a.m. that day, Vice Minister Lee stated that global risk factors that could increase volatility in domestic and international financial markets still exist.

The main risk factors cited were ▲uncertainty over the normalization of monetary policy in major countries including the United States ▲instability in the situation in Ukraine ▲concerns over economic recovery slowdown due to the spread of the Omicron variant and global inflation.

He said, "Please thoroughly check the available measures by market and situation prepared according to the contingency plan so that market stabilization measures can be immediately activated in case of emergency," and added, "The government will also closely cooperate with related ministries and agencies to closely monitor domestic and international economic and financial situations and will make every effort to respond, including timely activation of market stabilization measures if necessary."

However, he diagnosed that the recent reaction of our financial market has been excessive compared to major countries. Vice Minister Lee explained, "It is inevitable that our financial market is affected by changes in the international financial market, but recently the reaction of our financial market has been somewhat excessive compared to major countries," and added, "In the process of responding to changes in the international financial market in the future, it is necessary to consider our economy's fundamentals and external credibility more comprehensively and calmly."

He also predicted that during the Lunar New Year holiday period, the strong performance of U.S. companies and accommodative remarks on interest rate hikes, as well as the rebound of major countries' stock markets, could positively contribute to the stability and recovery of our financial market.

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