"Emergency Martial Law Situation" Lee Bok-hyun: "No Prior Notification... Shocked"

Lee Bok-hyun, Governor of the Financial Supervisory Service, stated that he did not receive any prior notification regarding President Yoon Seok-yeol's declaration of martial law. Regarding the uncertainty engulfing the domestic financial market due to the martial law situation, he emphasized that various measures, including the deployment of the Securities Market Stabilization Fund, are being prepared.

On the 4th, Lee Bok-hyun, Governor of the Financial Supervisory Service, attended a closed-door meeting to review the economic and financial situation at the Bankers Hall in Myeongdong, Seoul. Photo by Jo Yong-jun

원본보기 아이콘

On the 6th, Governor Lee appeared on Bloomberg TV and, when asked about the martial law situation, said, "I was shocked and did not receive any prior notification." Governor Lee, along with Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok and Financial Services Commission Chairman Kim Byung-hwan, had remained silent in response to reporters' questions about when they became aware of the martial law declaration during the emergency macroeconomic and financial issues meetings (F4 meetings) held daily since the 3rd, when martial law was declared. Governor Lee is a former prosecutor and has been classified as a close aide to President Yoon.

He also mentioned, "Regardless of impeachment, regime change, or political instability, the 'Value-Up Program will continue.'" This appears to be an attempt to dispel analyses suggesting that political uncertainty following the martial law situation would cause capital market stimulus measures such as the Value-Up Program to lose momentum.

Regarding the 10 trillion won Securities Market Stabilization Fund announced to reduce the shock to the domestic stock market, which has been experiencing unstable trends day after day, he explained, "The situation is still bearable," and "It has not been used." He added, "Other measures and contingency plans are also being prepared in case of additional market turmoil."

Meanwhile, he strongly criticized MBK Partners, which is in a management rights dispute with Korea Zinc. Governor Lee's judgment is that MBK Partners has not been able to persuade the market and the government of its future blueprint.

He emphasized, "MBK Partners has not convinced the market and authorities that it has a long-term vision for Korea Zinc that goes beyond the existing investment horizon," and added, "They must persuade not only the government but also the industry and investors that they will maintain this important industry."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.