Kim Yong-beom, Deputy Minister of Economy and Finance, "Expectations for Economic Recovery and Inflation Concerns Intersect... Monitoring Volatility"

Presiding Over the Macroeconomic and Financial Meeting on the 9th
Request to the National Assembly for "Swift Approval of the 4th Disaster Relief Fund"

Kim Yong-beom, First Vice Minister of Strategy and Finance, is speaking at the 'Macroeconomic Financial Meeting' held on the 9th at the Bankers Hall conference room in Jung-gu, Seoul. Photo by Moon Ho-nam munonam@

[Sejong=Asia Economy Reporter Moon Chaeseok] Kim Yong-beom, First Vice Minister of the Ministry of Economy and Finance, stated regarding the rise in U.S. Treasury yields, "Since both expectations for economic recovery and concerns about inflation exist, we will closely monitor volatility."

At the macroeconomic and financial meeting held on the 9th at the Seoul Banking Hall, Vice Minister Kim said, "If the upward trend in U.S. interest rates continues, there are assessments that unstable flows such as asset price adjustments due to risk aversion and capital outflows from emerging markets may occur."

He explained, "Economic activities, which had sharply contracted due to infectious diseases, have resumed, raising the possibility of inflation. Despite last week's reaffirmation of an accommodative monetary policy stance by Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), the rise in U.S. Treasury yields continues, making it an important variable in the international financial market."

He added, "As market volatility may increase depending on future U.S. Treasury auctions, the European Central Bank (ECB) monetary policy meeting on the 11th, and the discussions of the U.S. Federal Open Market Committee (FOMC) on the 16th and 17th, the government will closely monitor related trends."

Vice Minister Kim also mentioned the situation where the 10-year government bond yield in the domestic market exceeds 2%. He said, "For the time being, expectations for economic recovery and concerns about inflation and a steep rise in interest rates coexist, and market volatility is likely to continue. We will monitor related trends and respond promptly."

He requested the National Assembly to accelerate discussions and processing related to the fourth disaster relief fund amounting to 19.5 trillion won. He also mentioned, "The government will make every effort to prepare in advance for the execution of the supplementary budget so that it can be implemented immediately upon confirmation."

He emphasized, "The government will thoroughly manage economic and financial risks with the attitude of 호시우행 (Hosiuhaeng: 'keeping the eyes of a tiger while walking like an ox'), and will steadfastly move forward toward the swift overcoming of the COVID-19 crisis and the recovery and leap of our economy."