All Financial and Foreign Exchange Markets Operating Normally
Government "Will Provide Unlimited Liquidity"
The government will urgently convene ministers from 15 ministries to prevent economic and financial market turmoil following the declaration of martial law. The government has stated that it will mobilize all available means to quell market anxiety. The market will operate normally, and liquidity will be supplied without limit for the time being. Additionally, efforts will be concentrated on response measures, including holding daily emergency executive meetings.
Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance (left), Lee Chang-yong, Governor of the Bank of Korea (right), and Kim Byung-hwan, Chairman of the Financial Services Commission (center), are leaving the meeting room with serious expressions after a closed-door emergency macroeconomic and financial issues meeting held on the 4th at the Korea Federation of Banks in Jung-gu, Seoul. Photo by Jo Yong-jun
On the morning of the 4th at 7 a.m., 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 the Korea Federation of Banks building in Jung-gu, Seoul, and decided to supply liquidity without limit. This measure will be maintained for the time being until the stock, bond, short-term funds, and foreign exchange markets are fully normalized.
They also emphasized that a real-time joint government 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 explained, “We hold the daily F4 meetings every day to continuously monitor the situation,” adding, “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.”
A senior government official elaborated, “The Financial Services Commission and the Bank of Korea will mobilize all available means to ensure that liquidity instability absolutely does not occur,” and added, “This decision was swiftly made at this morning’s F4 meeting.”
Deputy Prime Minister Choi also convened an emergency economic ministers’ meeting at 10 a.m. that day. Along with ministers from key ministries, they are expected to review the economic situation following the declaration and lifting of martial law and examine response measures by sector. Ministers from the Ministry of Education, Ministry of Science and ICT, Ministry of Culture, Sports and Tourism, Ministry of Agriculture, Food and Rural Affairs, Ministry of Trade, Industry and Energy, Ministry of Health and Welfare, Ministry of Environment, Ministry of Employment and Labor, Ministry of Gender Equality and Family, Ministry of Land, Infrastructure and Transport, Ministry of Oceans and Fisheries, Ministry of SMEs and Startups, Office for Government Policy Coordination, and Financial Services Commission attended the meeting. The previously scheduled meeting to announce strengthened tailored support measures for small business owners and self-employed individuals was canceled.
On that day, the financial and foreign exchange markets opened normally. The government mentioned that after the lifting of martial law, the foreign exchange market and overseas Korean stock markets are gradually stabilizing. The Ministry of Economy and Finance analyzed that domestic banks’ foreign currency procurement is also being smoothly rolled over.
Following President Yoon Suk-yeol’s unexpected declaration of martial law the previous night, major government ministries were bustling. Deputy Prime Minister Choi convened the F4 meeting at 11:40 p.m., about an hour after the martial law declaration, at the Korea Federation of Banks in Jung-gu, Seoul. Subsequently, the Ministry of Economy and Finance urgently held a first-level executive meeting at the Government Seoul Office Building and began discussions. The Ministry stated, “As the economic control tower, we plan to manage and monitor the overall economy without wavering and with thoroughness,” and decided to hold daily first-level or higher executive meetings for this purpose.
The situation in Sejong City, where government ministries are concentrated, was also urgent. From around 11 a.m. the previous day, Ministry of the Interior and Safety officials wearing green civil defense uniforms arrived one after another at the Central Disaster and Safety Situation Room on the first floor of the Government Sejong Complex. The Central Disaster and Safety Situation Room is the control tower that oversees the reception, transmission, situation assessment, and information gathering related to disaster situations. Some senior officials entered quickly in civilian clothes due to the urgency of the summons.
The Ministry of Employment and Labor held an emergency meeting at 8 a.m. that day to discuss the ministry’s response measures. The ministry decided to carry out important tasks such as labor supervision, industrial safety, and employment support without disruption. Also, for local offices where face-to-face work is required, efforts will be made to ensure there is no inconvenience to the public. The Ministry of Oceans and Fisheries also urgently held a first-level executive meeting at around 12:15 a.m. that day at the Government Sejong Complex under the chairmanship of Minister Kang Do-hyung. The ministry discussed measures to ensure the normal operation of shipping ports, response to illegal fishing, and the smooth implementation of existing tasks and national agenda items. The Ministry of Agriculture, Food and Rural Affairs, immediately after the martial law declaration, under the direction of Minister Song Mi-ryeong, monitored the situation and decided to proceed with existing tasks and national agenda items without disruption.
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