Vice Minister Ki Jae: "Expanding Treasury Bond Buyback from 2 Trillion to 3 Trillion... Minimizing Damage from Hwamyulyeondae Strike"

Emergency Economic Response TF 11th Meeting

Bang Gi-seon, First Vice Minister of the Ministry of Economy and Finance, is presiding over the 11th Emergency Economic Response TF meeting held at the Government Seoul Office Building on the 14th. 2022.6.14 [Photo by Yonhap News]

[Asia Economy Sejong=Reporter Son Seon-hee] As the won-dollar exchange rate surpassed the 1,290 won level, showing signs of instability, the government decided to expand the planned treasury bond buyback amount this week from the original plan of 2 trillion won to 3 trillion won.

Bang Gi-seon, the 1st Vice Minister of Strategy and Finance, chaired the "Emergency Economic Response Task Force (TF)" meeting at the Government Seoul Office on the morning of the 14th and stated, "In a situation where uncertainties in domestic and international financial markets and the real economy are increasing, we will closely monitor with special vigilance and caution," adding, "If necessary, we will strengthen cooperation with related agencies for market stabilization measures." He also announced that the number of buyback items will be increased from the existing 6 to 9.

The U.S. Federal Open Market Committee (FOMC) meeting is scheduled for the 16th. There are forecasts that the base interest rate hike could exceed expectations and a 'giant step' of about 0.75 percentage points may be taken. Accordingly, volatility in domestic and international financial markets is also significantly increasing. Overseas stock markets such as the U.S. and Europe have plunged for two consecutive trading days, and U.S. Treasury yields are also rising sharply. In response, the government plans to hold a macroeconomic and financial meeting aligned with the FOMC meeting to focus on discussing countermeasures for market stabilization.

In particular, the ongoing Cargo Solidarity strike since the 7th is also adversely affecting the real economy. Vice Minister Bang said, "Due to recent logistics disruptions related to the Cargo Solidarity, damage has occurred in industrial sites, and the conditions of the financial market and real economy are very severe," adding, "Through cooperation with related agencies, we will closely monitor the real economic impact of the Cargo Solidarity strike and strive to minimize logistics damage by deploying company-specific transport personnel and implementing the government's emergency transportation measures."

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