"Institutions Should Address Short-Term Market Fluctuations with a Mid-to-Long-Term Perspective"
Authorities Consistently Promote Capital Market Advancement and Regulatory Rationalization
Investor Alerts on Policy and Political Theme Stocks
Enhanced Monitoring of Abnormal Virtual Asset Transactions
Lee Bok-hyun, Governor of the Financial Supervisory Service, emphasized that since there is a possibility of increased market volatility following the emergency martial law situation, continuous efforts by institutional investors and financial authorities to stabilize the market from a mid- to long-term perspective are necessary.
On the 5th, Governor Lee held a financial situation review meeting and assessed that the financial and foreign exchange markets are relatively stable due to the authorities' market stabilization measures and favorable foreign currency liquidity conditions. However, he mentioned, "With difficulties expected for our economy next year due to U.S. tariff policies and added political uncertainties, market volatility may increase, so continuous market stabilization is required."
He particularly urged institutional investors to respond to short-term market fluctuations with a mid- to long-term investment horizon, and stated that the supervisory authorities will consistently promote capital market advancement and regulatory rationalization from a long-term perspective.
He said, "As the market is stabilizing rapidly, economic agents such as financial companies should proceed with investments and fund supply as planned, which will be a driving force for economic and market recovery," adding, "The supervisory authorities will also actively support economic agents so they can focus on normal economic activities."
He also added a request to proactively detect and respond to even small signs of abnormalities until the market stabilizes.
Governor Lee stated, "We need to strengthen communication with financial market experts and foreign investors to fully listen to and collect market opinions, and re-examine financial companies' emergency response plans to supplement necessary items," adding, "It is also necessary to inspect in advance whether there are vulnerable areas for financial consumer damage due to increased market volatility and to guide CCOs (Chief Consumer Officers) accordingly."
He said that investor caution measures regarding policy and political theme stocks and enhanced monitoring of abnormal transactions in virtual assets should also be strengthened.
He said, "Conduct detailed analysis on policy and political theme stocks showing abnormal signs, and if there are concerns about investor damage, issue consumer alerts and take investor caution measures," adding, "Considering that the virtual asset market, which has recently experienced increased volatility, is in the early stages of regulatory framework introduction, continuously explore regulatory improvement measures and strengthen monitoring of abnormal transactions."
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