Deputy Prime Minister Choi Sang-mok Reaffirms Commitment to Market Stability

Choi Sang-mok, the Deputy Prime Minister and Minister of Economy and Finance, convened an emergency meeting with key economic organizations to address the current financial and foreign exchange market situation. The meeting, held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, underscored the government's determination to swiftly implement all necessary measures to stabilize the market.

Following President Yoon Suk-yeol's declaration of a state of emergency, concerns among foreign investors have risen. To address these concerns, the fiscal and monetary authorities have pledged to provide immediate liquidity support and other stabilization measures.

The F4 meeting, attended by the heads of fiscal and monetary authorities, assessed that the impact of the state of emergency on the financial and foreign exchange markets has been limited. However, they emphasized the need to take proactive steps to minimize future market volatility.

To ensure continuous monitoring and rapid response, the government plans to operate an "Economic and Financial Situation Monitoring Task Force" around the clock until the market stabilizes. Additionally, preparations are underway to activate a securities market stabilization fund of up to 10 trillion won and a bond market stabilization fund of approximately 40 trillion won.

The Bank of Korea has also announced its intention to provide unlimited liquidity through repurchase agreements (RPs) and, if necessary, to supply foreign currency liquidity through outright purchases of government bonds and foreign currency RPs.