Lee Bok-hyun, Financial Supervisory Service Chief, "Strict Measures Against Illegal Activities Exploiting Exchange Rate Volatility"

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[Asia Economy Reporter Ji Yeon-jin] Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), recently announced that strict measures will be taken against illegal and unfair practices that exploit the increased volatility in the capital market caused by the recent sharp rise in exchange rates, resulting in investor losses and further market volatility.

At the FSS executive meeting on the morning of the 23rd, Governor Lee stated, "When volatility in the capital market expands, illegal and unfair acts that exploit this situation to cause harm to investors and undermine market credibility, thereby further increasing market volatility, may occur. We will thoroughly investigate illegal and unfair activities in the capital market in cooperation with the Financial Services Commission’s Capital Market Investigation Team, and strictly take action against any violations found."

He added, "Currently, the domestic financial sector is able to absorb external shocks, perform its fund intermediation functions normally, and maintain financial stability without issues," while also noting, "The FSS is closely monitoring key risk factors in vulnerable areas such as the foreign exchange market and short-term money markets, and is carefully watching to ensure that individual financial institutions’ soundness and liquidity problems do not escalate into systemic financial risks."

However, he cautioned that the soundness of financial institutions’ operations, investor overreactions leading to herd behavior, and excessive leverage must be carefully guarded against.

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