Choo Kyung-ho: "Economic Uncertainty from China Real Estate... Market Stabilization Measures if Necessary"

The government announced on the 20th that it will swiftly implement market stabilization measures if necessary to respond to economic instability caused by the recent Chinese real estate crisis.

On the same day, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho held a meeting at the Seoul Federation of Banks building with Bank of Korea Governor Lee Chang-yong, Financial Services Commission Chairman Kim Ju-hyun, Financial Supervisory Service Governor Lee Bok-hyun, and Chief Presidential Secretary for Economic Affairs Choi Sang-mok to review recent economic and financial issues and their impacts.

They noted that uncertainties in global financial markets have increased due to difficulties in the Chinese real estate sector and heightened volatility in the U.S. Treasury market, but assessed that the resulting impact remains limited so far.

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho held a macroeconomic and financial issues meeting on the morning of the 20th at the Korea Federation of Banks building in Jung-gu, Seoul, together with Lee Chang-yong, Governor of the Bank of Korea, Kim Ju-hyun, Chairman of the Financial Services Commission, Lee Bok-hyun, Governor of the Financial Supervisory Service, and Choi Sang-mok, Senior Secretary for Economic Affairs, focusing on recent global economic and financial major issues and their impacts.

The government’s assessment is that the exposure of domestic financial institutions to Chinese real estate developers amounts to 400 billion KRW, which is not significant.

Nevertheless, the participants agreed that domestic impacts cannot be ruled out in the future. They decided to further strengthen real-time monitoring of key risk factors through the intergovernmental joint economic situation inspection team, which has been operating since the second half of last year.

Additionally, they agreed to reexamine contingency response plans and, when necessary, promptly implement market stabilization measures in cooperation with relevant agencies.

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