Lee Ju-yeol, BOK Governor, Says "Geopolitical Risks May Increase Financial Market Volatility"

Ijuyeol, Governor of the Bank of Korea [Image source=Yonhap News]

On the 22nd at 10 a.m., the Bank of Korea held a 'Financial and Economic Situation Review Meeting' chaired by Governor Lee Ju-yeol to assess the impact of the Russian military's entry into the Donbas region of Ukraine on the domestic financial and economic sectors.

The Bank explained that immediately after news of the Russian military deployment to Ukraine was reported, volatility in price variables in both international and domestic financial markets increased, but then subsided somewhat, leading to a degree of stabilization.

Earlier, on the 21st (local time), Russia declared the independence of the pro-Russian separatist regions in eastern Ukraine and decided to deploy Russian troops under the pretext of peacekeeping. As a result, with expectations of an imminent Russian invasion of Ukraine, the United States and other Western countries promptly began preparing sanction measures.

Governor Lee urged, "Depending on the development of geopolitical risks related to Ukraine, financial market volatility may increase, and there could be overall effects on the real economy, including growth and inflation. Therefore, please operate a 24-hour monitoring system to closely examine the progress of this situation and its impact on domestic and international financial and economic conditions."

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