Vice Minister Ki Jae: "24-Hour Monitoring of Changes from Omicron Variant... Buffer Capacity and Adaptability Improved"

Lee Eok-won, 1st Vice Minister of the Ministry of Economy and Finance, Macroeconomic and Financial Monitoring Meeting
"Market buffering capacity has increased... Shock recovered within a short period" emphasized
"Adaptability such as non-face-to-face work has also improved" Cautions against excessive concerns

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyun-jung] Lee Eok-won, 1st Vice Minister of the Ministry of Economy and Finance, announced on the 29th that a 24-hour monitoring system will be operated to respond to domestic and international market fluctuations caused by the emergence of the Omicron variant virus. He explained that until a clear analysis of the spread trend and risk is available, it could act as a factor increasing market volatility, and that inter-agency cooperation will be undertaken.

On the morning of the same day, Vice Minister Lee held a macroeconomic and financial monitoring meeting involving departments related to macroeconomic finance within the Ministry of Economy and Finance and the International Finance Center, where he made these remarks. The meeting reviewed domestic and international financial market trends following the emergence of the Omicron variant and discussed future response directions.

Vice Minister Lee assessed, "Until a clear analysis of the spread trend and risk of the Omicron variant is available, it is difficult to rule out the possibility that, due to lack of information, Omicron could act as an uncertainty factor that temporarily increases volatility in domestic and international financial markets."

However, he emphasized the need for a calmer response, citing the increased buffering capacity of our market. He explained, "It is necessary to consider more comprehensively and calmly ▲ the resilience of our financial market observed during past resurgence periods ▲ improvements in quarantine and medical systems responding to COVID-19 at the global level ▲ and the increased buffering capacity against shocks from COVID-19 spread in terms of economic activities such as the expansion of non-face-to-face work and online consumption." He continued, "First, our financial market has shown resilience by recovering from shocks within a relatively short period even during past COVID-19 resurgences. Since the emergence of the coronavirus, quarantine and medical (vaccines, therapeutics) response systems have been continuously expanded and strengthened globally, and in terms of economic activities, adaptability to buffer COVID-19 shocks has also increased through the spread of non-face-to-face work and online consumption."

He added, "We will closely monitor the impact of the Omicron variant on the economy and financial markets and operate a 24-hour monitoring system for the variant virus and domestic and international financial markets. In particular, we will meticulously review market stabilization measures by financial market and situation, and if necessary, respond proactively and preemptively in cooperation with related agencies."