The Financial Supervisory Service to Hold Internal and External Risk Situation Review Meeting on the 29th

Held Every Wednesday

[Asia Economy Reporter Jin-ho Kim] The Financial Supervisory Service (FSS) announced on the 28th that it held an executive meeting chaired by FSS Governor Jeong Eun-bo and decided to activate a task force (TF) to monitor domestic and international risk situations.

According to the FSS, discussions on tapering and interest rate hikes in the United States have intensified since the second half of this year, and concerns over insolvency in China's real estate sector, including the Evergrande Group, are also rising.

Domestically, the possibility of additional interest rate hikes remains, and multiple risk factors are emerging simultaneously both at home and abroad.

The FSS pointed out that these factors could increase overall volatility not only in foreign exchange and stock markets but also in real estate and virtual asset markets. It also emphasized the need to closely examine risk transmission channels and prepare accordingly, as interconnectedness and amplification effects could intensify the impact, creating a "perfect storm."

Accordingly, starting this Wednesday, the Financial Supervisory Service will hold weekly 'Domestic and International Risk Situation Monitoring TF' meetings to thoroughly review the financial market situation and foreign currency liquidity conditions in the financial sector.

An FSS official explained, "If necessary, we plan to seek timely supervisory responses in cooperation with related agencies such as the Financial Services Commission and the Ministry of Economy and Finance."