Government: "No Need to Worry About Financial Market Impact from Wuhan Pneumonia"... Market Stabilization Measures If Necessary

[Asia Economy Reporter Jang Sehee] The government announced that until the situation of the novel coronavirus infection, known as 'Wuhan Pneumonia,' is resolved, related ministries and agencies will collaborate to examine potential impacts in various sectors and respond proactively.

On the 27th, Kim Yong-beom, First Vice Minister of the Ministry of Economy and Finance, held an expanded macroeconomic and financial meeting at the Government Seoul Office and emphasized, "Considering the resilience our financial market showed during past cases such as SARS and MERS, as well as the record-high foreign exchange reserves and net external assets, there is no need to be excessively concerned about the impact on the financial market."

He stated, "It is still difficult to predict the future developments related to the infection, and there is a possibility of increased volatility in domestic and international financial and foreign exchange markets," adding, "If market instability expands, we will implement market stabilization measures according to the contingency plan."

The government decided to thoroughly examine potential impacts, as there are concerns that negative effects may appear not only on the global economy but also on the domestic economy, including tourism, consumption, and exports, depending on the future developments and duration.

Vice Minister Kim said, "If this situation prolongs, it cannot be ruled out that expectations for global economic improvement, prepared by the recent US-China Phase One trade agreement, may weaken," and added, "We must strive to ensure there is no disruption in securing momentum for economic recovery by promptly executing investments of 100 trillion won and policy financing of 479 trillion won."