South Korea Braces for Financial Market Volatility Following U.S. Tariff Announcement

Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok has voiced concerns over potential spikes in volatility within domestic and international financial markets. This comes in the wake of the U.S. administration's decision to impose reciprocal tariffs, including a hefty 25% on Korean goods. "High volatility in global financial markets is expected to continue, with domestic markets likely to react sensitively," Choi stated.

Strategic Measures to Mitigate Market Disruptions

In response, Choi convened the Macroeconomic and Financial Issues Meeting, gathering key figures such as Rhee Chang-yong of the Bank of Korea and Kim Byung-hwan of the Financial Services Commission. The agenda focused on assessing the impact of U.S. tariffs and formulating strategies to ensure market stability. "We are prepared to deploy all necessary measures to stabilize the market should volatility escalate," Choi emphasized.

Comprehensive Response and Future Plans

The government is not only focusing on immediate stabilization efforts but also on long-term strategies, including negotiations with the U.S. and support for affected industries. A proposed 10 trillion won supplementary budget aims to address trade risks and bolster industrial competitiveness. "Our goal is to diversify export markets and enhance industrial competitiveness through technology," Choi added.