Kim Yong-beom, the 1st Vice Minister of Strategy and Finance, is delivering opening remarks while presiding over the 'Macroeconomic Financial Meeting' held on the 24th at the Bankers' Hall in Myeongdong, Seoul.
[Asia Economy Reporter Kwangho Lee] Kim Yong-beom, First Vice Minister of Strategy and Finance, said on the 24th, "We will make every effort to promptly finalize the recipients of the 4th supplementary budget by utilizing administrative information from relevant ministries, and to execute the budget as much as possible before the Chuseok holiday through a simple application and review process."
At the macroeconomic and financial meeting held at the Bankers' Hall in Myeongdong, Seoul, Vice Minister Kim stated, "Since the focus is on providing tailored and substantial support to vulnerable groups who are more affected during difficult times by utilizing limited resources, we will expedite the execution of the 4th supplementary budget to quickly resolve difficulties faced by the public."
Regarding the current market situation, Vice Minister Kim assessed, "Although the second wave of COVID-19 seemed to ease somewhat, the number of cases has again exceeded 100, so we cannot guarantee a clear improvement and must remain vigilant."
He added, "The global stock markets, which had risen sharply, are experiencing increased volatility due to uncertainties about economic recovery and declines in technology stocks. Uncertainty about U.S. monetary policy continues, so it is necessary to closely monitor market reactions and evaluations going forward."
He also emphasized, "Due to increased volatility in major global stock markets, our stock market may also experience greater volatility, so special caution is required."
Regarding recent exchange rates, he said, "Volatility in the domestic foreign exchange market is also increasing. Given the significant domestic and international uncertainties, the government will continue to closely monitor related situations and maintain efforts to stabilize the domestic foreign exchange and financial markets."
Vice Minister Kim forecasted, "Although the end of the quarter, when temporary liquidity shortages may occur, is approaching, considering that market liquidity is relatively abundant and most maturing bonds are of high credit ratings, the stability of the funding market is expected to be maintained."
However, he added, "We will keep in mind that financial difficulties, especially in vulnerable industries, could arise at any time, and we will continuously monitor market trends to prevent a recurrence of credit crunch phenomena like those seen at the end of March."
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