Russia-Ukraine Crisis... FSC Holds 'Emergency Financial Market Situation Review Meeting'

On the 22nd, after Russia approved the independence of the conflict area in Ukraine and ordered troop deployment, citizens are watching news related to the Ukraine situation in the Seoul Station waiting room. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Song Seung-seop] As diplomatic and military tensions between Russia and Ukraine escalate, financial authorities have also taken measures by urgently reviewing market conditions.

On the 22nd, the Financial Supervisory Service (FSS) held an executive meeting at 10 a.m. under the direction of FSS Governor Jeong Eun-bo, converting it into an "Emergency Financial Market Situation Review Meeting." At this meeting, Governor Jeong instructed, "Establish a 24-hour emergency response system and thoroughly prepare for the expansion of uncertainties."

Senior Deputy Governor Lee Chan-woo pointed out, "If the Ukraine situation worsens and major countries' financial and export-related sanctions against Russia are fully implemented, a sharp rise in prices of raw materials such as oil and a contraction in trade are inevitable. Geopolitical risks combined with the normalization of monetary policies in major countries like the U.S. could increase the risk of credit and liquidity crunches in financial markets and spread instability."

On the same day, Senior Deputy Governor Lee ordered a review of the current status of foreign exchange settlement networks related to Russia and daily fund settlement trends. Plans are in place to strengthen foreign currency liquidity management across the entire financial sector, including operating a hotline for foreign exchange banks.

Additionally, they will monitor global financial markets and foreign investment trends 24 hours a day and requested an inspection of short-term liquidity and foreign currency contract operations at securities firms.

He emphasized, "Since risks related to Ukraine could combine with other factors during the COVID-19 situation to amplify risks, actively respond to financial market instability factors in cooperation with related agencies."

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