Financial Services Commission Holds Emergency Market Inspection Meeting
As military tensions escalate in the Middle East due to the Iran-Israel conflict, financial authorities expect the impact on the domestic financial market to be limited. However, given the significant uncertainty surrounding the situation's direction, the authorities plan to strengthen monitoring and establish a thorough response system.
Chairman Kim Ju-hyun presiding over the meeting. [Image source: Provided by the Financial Services Commission]
On the morning of the 15th, Kim Joo-hyun, Chairman of the Financial Services Commission, held an "Emergency Market Inspection Meeting" to discuss the market impact and response measures related to the Iran-Israel military conflict. He stated, "Our financial market is showing stability, but potential market instability factors remain, such as the increasing uncertainty over the U.S. monetary policy shift and the rising geopolitical risks in the Middle East."
At the meeting, participants analyzed that the current situation is unlikely to have a direct impact on the domestic financial sector. This assessment is based on the relatively small exposure of domestic financial companies to the countries involved in the conflict?approximately 1 million USD for Iran and 290 million USD for Israel?and the favorable conditions for foreign currency procurement in the financial sector.
Chairman Kim emphasized, "Given the sound conditions of the domestic financial market and the government's sufficient capacity to respond to market instability factors, market participants need not have excessive concerns," urging them to "respond calmly and rationally."
However, the authorities acknowledged the significant uncertainty regarding the future developments of the Middle East situation and the potential for considerable impact on global financial markets if the situation worsens. Therefore, they decided to enhance monitoring of the situation and both domestic and international financial markets. Should instability arise in the financial markets due to the worsening situation, the response will focus on the currently operational market stabilization program worth 94 trillion KRW. If additional measures are necessary, swift supplementary plans will be prepared based on close cooperation with relevant government departments.
The Financial Services Commission stated, "We will further strengthen monitoring of domestic and international financial markets concerning the ongoing situation and maintain close, continuous communication with the financial sector," adding, "We will maintain a thorough state of readiness to ensure we do not miss the golden time for policy response should market instability intensify."
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