All Financial Markets Operating Normally... "Foreign Currency Funding Market Stable, Will Monitor Closely" (Comprehensive)

Choi Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, is leaving the meeting room with a stern expression after concluding a closed-door emergency macroeconomic and financial issues briefing held on the 4th at the Korea Federation of Banks in Jung-gu, Seoul.

The government decided on the 4th to fully normalize the domestic financial and foreign exchange markets. It analyzed that the market situation has entered a stable phase following the lifting of the emergency martial law. However, it stated that it will consider all measures to prevent market volatility, including unlimited liquidity supply.

Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, Lee Chang-yong, Governor of the Bank of Korea, Kim Byung-hwan, Chairman of the Financial Services Commission, and Lee Bok-hyun, Governor of the Financial Supervisory Service, held an 'Emergency Macroeconomic and Financial Issues Meeting (F4)' at 7 a.m. at the Federation of Korean Banks building in Jung-gu, Seoul, and made this decision.

The government explained that since the lifting of the emergency martial law, the foreign exchange market and overseas Korean stock markets have gradually stabilized. After President Yoon Suk-yeol’s martial law declaration at 10:30 p.m. on the 3rd, the won-dollar exchange rate (NDF) surged to 1,444 won but closed at 1,415.8 won. The Ministry of Economy and Finance stated that foreign currency procurement by domestic banks is also being smoothly refinanced.

The attendees agreed to supply unlimited liquidity until the stock, bond, short-term funds, and foreign currency fund markets are fully normalized. They also emphasized that a government-wide joint real-time monitoring system will be operated to closely watch the financial market situation and that all necessary measures to stabilize the market will be promptly implemented if needed.

After the meeting, Governor Lee met with reporters and, regarding the assessment that the market has stabilized, said, “The foreign currency fund market is moving stably,” and “We will closely monitor the intraday situation.” He added, “We hold daily F4 meetings to continuously check the situation,” and “The Bank of Korea’s Monetary Policy Committee will also hold a meeting, and under the leadership of the Financial Services Commission Chairman, management plans related to private financial companies will be discussed.”

The heads of the economic and financial control towers held an emergency F4 meeting at 11:40 p.m. the previous night, immediately after President Yoon Suk-yeol’s declaration of emergency martial law, to discuss financial market response measures.