[2022 National Audit] Financial Services Commission Chairman: "Bank of Korea Will Take All Possible Measures"

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] On the 25th, Kim Ju-hyun, Chairman of the Financial Services Commission, said regarding the bond market instability caused by the LegoLand default declaration in Gangwon Province, "At this point, the Bank of Korea will take all possible measures."

At the National Assembly's Finance and Economy Committee's audit of the Financial Services Commission held that afternoon, in response to a question from Lee Yong-woo, a member of the Democratic Party of Korea, about the government's liquidity support measures exceeding 50 trillion won announced the previous day, Kim said, "We will respond with special care."

Kim explained, "While the recent tightening of the money market is partly due to LegoLand, it occurred in a situation where inflation surged and interest rates rose sharply in a short period, creating inherent instability factors." He added, "(The government) recognized the asset-backed commercial paper (ABCP) issue, partially compensated the construction company's share, and resolved market instability by agreeing to purchase CPs for the securities firms' committed purchases."

In particular, regarding the failure to refinance the Dunchon Jugong PF project, considered the "largest reconstruction project since Dangun," Kim said, "We are also paying close attention to specific apartment redevelopment issues."

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