Lee Eogwon: "Immediate Market Stabilization Measures if Volatility Increases"

Financial Services Commission Holds Task Force Meeting on Middle East Situation

Expansion of Bond and Short-term Money Market Stabilization Programs

Proactive Response through Stress Testing

The financial authorities have announced that, should market volatility increase due to the failure of a ceasefire between the United States and Iran, they will immediately and decisively implement market stabilization measures.

Yonhap News Agency

The Financial Services Commission made this statement on the 13th during the 'Emergency Financial Sector Response Task Force (TF) on the Middle East Situation,' which was presided over by Chairman Lee Eogwon.

This meeting was convened to assess risk factors in the financial markets amid the resurgence of geopolitical risks following the breakdown of a ceasefire agreement between the United States and Iran, and to establish an emergency response system at the pan-government level.

Chairman Lee stated, "Uncertainty surrounding our economy remains severe due to the failure to reach a ceasefire agreement," and urged, "Do not let your guard down until a clear declaration of the end of the conflict is made, and please ensure thorough maintenance of the currently operating 'Emergency Financial Sector Response System.'"

He further requested that, as the current emergency response system will be strictly maintained at the pan-government level, ongoing efforts should be made to stabilize the financial markets and provide seamless funding support for people's livelihoods and the real economy.

Chairman Lee ordered that market trends related to the Middle East situation be closely monitored around the clock, and that market stabilization measures be implemented immediately and boldly should volatility expand. In particular, since it has been decided to expand support for the bond and short-term money market stabilization programs, he stressed that these programs should be further expanded immediately if necessary.

He also called for continued funding support for people's livelihoods and the real economy. Chairman Lee emphasized that, since the size of support for the 'Policy Finance Support Program' targeting affected companies has recently been increased to 25.6 trillion won through a supplementary budget, more active execution is necessary. In addition, he requested that private financial institutions also be prepared to expand both the amount and scope of new funding supply, such as the '53 trillion won + alpha' program, as needed.

He added that by holding a series of relay meetings and similar sessions, authorities should continue to gather on-site feedback and devise practical solutions that can be of genuine help. In particular, he said that issues discussed at last week's construction and financial sector roundtable should be reviewed and addressed promptly. Furthermore, since the Korea Development Bank and Export-Import Bank of Korea have confirmed liquidity support totaling 3 billion dollars to help the Korea National Oil Corporation secure crude oil smoothly, this support should also be executed as soon as possible.

Lastly, regarding the financial industry, he stressed that, to prevent risks from the real economy from spreading to the financial sector, authorities should respond proactively by conducting stress tests that assume worst-case scenarios.

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