Yoon: "Pain from Interest Rate Hikes... Will Create Credit Policies to Prevent Bankruptcies"

- Discussions on Financial Burden Support Plan with Ruling Party... "Considering Expanding Corporate Bond and CP Purchases by 10 Trillion"
- Possibility of US Nuclear Sharing... Yoon "Carefully Examining Various Possibilities"

[Image source=Yonhap News]

[Asia Economy reporters Baek Kyunghwan and Lee Jieun] President Yoon Suk-yeol commented on the Bank of Korea's big step of raising the base interest rate by 0.5 percentage points, saying, "The government will create and manage appropriate credit policies to ensure that households and businesses do not go bankrupt." This is interpreted as meaning that appropriate measures will be taken as the interest burden increases. President Yoon also hinted at the possibility of redeploying tactical nuclear weapons, stating that "various possibilities are being carefully examined" regarding North Korea's nuclear response measures.

On the morning of the 13th, President Yoon made these remarks to reporters on his way to the presidential office in Yongsan, Seoul, emphasizing, "The crisis should neither be exaggerated nor neglected." He added, "It is true that many citizens and businesspeople are concerned about financial market volatility and real economy uncertainties. Proper understanding and management are always necessary, and the government is doing its best to manage the real economy firmly and to ensure that our foreign exchange reserves are well managed so that unnecessary outflows do not occur."

The ruling party also called for specific countermeasures in response to the interest rate hike. Seong Il-jong, the Policy Committee Chair of the People Power Party, stated at a field emergency meeting held in Daegu that morning, "Although the financial authorities have increased the purchase capacity for corporate bonds and CP (commercial paper) from 6 trillion won to 8 trillion won, I hope they will consider expanding this further to 10 trillion won." He elaborated, "Due to the interest rate hike, the interest rates on corporate bonds for small and medium-sized enterprises are also rising, and demand for corporate bonds is sharply declining, making it difficult for SMEs to raise funds. Maximum measures must be taken to ease the financial bottleneck for SMEs."

Regarding the growing calls within the ruling party for the redeployment of tactical nuclear weapons, President Yoon once again mentioned the "possibility." In response to reporters' questions about reports that a practical nuclear sharing request has been made to the United States, he said, "Currently, various opinions related to extended deterrence are emerging both domestically and in the U.S. political circles. We are listening carefully and thoroughly examining various possibilities."

The presidential office also expressed an open stance on the possibility of redeploying tactical nuclear weapons. While drawing a line on whether there have been specific discussions with the ruling party, an official said, "The channel for dialogue with the U.S. to strengthen the Korea-U.S. extended deterrence is always open," adding, "(The redeployment of tactical nuclear weapons) is also one of the possible options among various choices."

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