Deputy PM Choi Announces Aggressive Market Stabilization Measures

Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok has revealed plans to promptly execute the second value-up fund worth 300 billion won ($230 million). This announcement was made during an emergency macroeconomic and financial issues meeting held at the Korea Federation of Banks in Jung-gu, Seoul, on December 23.

Choi emphasized the urgency of these measures, stating, "Given the high internal and external uncertainties, we will monitor the financial and foreign exchange markets 24 hours a day with high vigilance." He also noted that the central bank has already supplied a total of 19.6 trillion won in short-term liquidity since December 4.

The government's swift implementation of these policies aims to stabilize the market. Key measures include the execution of the second value-up fund, improvements in corporate governance and tax support, and expediting follow-up measures to the "foreign exchange supply and demand improvement plan." Choi also highlighted plans to increase the limit on banks' foreign exchange forward positions by 50% and expand the foreign exchange swap volume between the National Pension Service and the Bank of Korea.

These aggressive steps are in response to increased volatility in the global financial markets and the weakening of major currencies. The government is committed to completing these measures to enhance forward positions and expand foreign exchange swaps by this month, with further easing of regulations on foreign currency loans for domestic use by companies planned for next month.