FSS Chief: "Trade Tensions May Reemerge Anytime, Economic Stimulus Urgent"

Financial Supervisory Service Holds Meeting
to Review Financial Market Trends
Amid Base Rate Cut and Global Interest Rate Concerns

The Financial Supervisory Service announced that on the morning of the 29th, immediately after the Bank of Korea's base rate cut, it held a financial situation inspection meeting at its headquarters in Yeouido, Seoul, to review the financial market trends. Photo by Financial Supervisory Service.

The Financial Supervisory Service announced that on the morning of the 29th, immediately after the Bank of Korea's base rate cut, it held a financial situation inspection meeting at its headquarters in Yeouido, Seoul, to review the financial market trends.

At the meeting, it was assessed that despite the Bank of Korea's base rate cut, the rise in global long-term interest rates?driven by concerns over fiscal soundness in the United States and Japan?is increasing upward pressure on domestic market interest rates.

It was also noted that although the U.S. federal court issued a ruling to cancel a tariff order that morning, trade tensions and exchange rate instability could resurface at any time, as the U.S. administration could still apply trade pressure through legal responses or other administrative measures.

Additionally, policy uncertainty is negatively affecting investment and consumption. Depending on the levels of economic indicators to be announced in the future, market volatility could increase significantly. The Bank of Korea has also lowered its growth outlook for this year to 0.8%, making economic stimulus more urgent than ever.

Lee Bokhyun, Governor of the Financial Supervisory Service, stated, "Regardless of politics, we will consistently address key issues such as resolving distressed project financing, managing household debt, supporting small business owners, advancing the capital market, and ensuring financial stability, so that the new government, which will soon be inaugurated, can focus on economic recovery." He also emphasized, "We must thoroughly prepare for a range of future policy challenges, including the new government's response to population aging, regulatory innovation for artificial intelligence, and the development of the digital asset ecosystem."

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