Financial Authorities "Immediate Activation of 50 Trillion Won + α Liquidity Support Measures"

Financial Services Commission Holds Meeting to Review Current Status of Funding Market
Emphasizes Joint Efforts by Private Sector and Government

On the afternoon of the 23rd, Kwon Dae-young, Standing Commissioner of the Financial Services Commission, held a meeting to review the current status of the money market at the Bankers' Hall in Jung-gu, Seoul, together with the Financial Supervisory Service, financial associations, policy financial institutions, and financial companies, to assess the recent money market conditions and risk factors of financial companies.

[Asia Economy Reporter Song Hwajeong] Financial authorities announced that they will immediately activate the government's liquidity support measures amounting to '50 trillion won + α' announced at the Emergency Macroeconomic Financial Meeting.

According to the Financial Services Commission on the 23rd, after the Emergency Macroeconomic Financial Meeting held that day, a senior executive meeting chaired by the Financial Services Commission Chairman was held. Chairman Kim Joo-hyun ordered the prompt implementation of follow-up measures for the policies announced at the Emergency Macroeconomic Financial Meeting. Subsequently, under the chairmanship of Standing Commissioner Kwon Dae-young, the Financial Supervisory Service, Financial Associations, policy financial institutions, and financial companies held a meeting to review the current status of the money market and assess risk factors of financial companies.

At this meeting, the financial authorities explained that they will immediately activate liquidity support measures amounting to 50 trillion won + α and emphasized that the government will mobilize all capabilities to implement sufficient support measures to stabilize the market.

Standing Commissioner Kwon stated, "Since the restoration of market mechanisms is the most crucial, financial sectors and market participants such as institutional investors need to strengthen their own efforts so that the money market’s intermediation function can be restored and a virtuous cycle can be established."

Additionally, Standing Commissioner Kwon emphasized, "Moreover, since there are limits to the government's resources alone, it is necessary for the 'private sector + government' to mobilize all accumulated capabilities and communicate frequently to make joint efforts for market stabilization."

The financial sectors also announced that they will strengthen sector-wide efforts for market stabilization centered on associations and actively cooperate with the government's market stabilization measures.

On the same day, the government held the Emergency Macroeconomic Financial Meeting and decided to activate a liquidity supply program of 50 trillion won + α. This liquidity supply program consists of a 20 trillion won Bond Market Stabilization Fund (Bond Stabilization Fund), a 16 trillion won corporate bond and commercial paper (CP) purchase program, 3 trillion won support for securities firms facing liquidity shortages, and 10 trillion won in guarantees for businesses by the Housing and Urban Guarantee Corporation (HUG) and the Korea Housing Finance Corporation.

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