New Year Meeting of Financial Supervisory Authorities... Acting Governor Choi Urges "Calm Response to Market Conditions"
Bank of Korea Governor Reiterates "Appointment of Acting Governor Choi as Constitutional Court Justice Was an Inevitable Decision"
Financial policy leaders have pledged to do their utmost to ensure 'financial stability' amid greater domestic and international uncertainties than ever before this year.
Lee Chang-yong, Governor of the Bank of Korea; Kim Byung-hwan, Chairman of the Financial Services Commission; Lee Bok-hyun, Governor of the Financial Supervisory Service; and Cho Yong-byeong, Chairman of the Korea Federation of Banks, along with heads of various financial sector associations, attended the 'Pan-Financial New Year Meeting' held on the 3rd at Lotte Hotel in Jung-gu, Seoul, where they exchanged views with financial industry figures. Among the members of the Macroeconomic and Financial Issues Meeting (F4), only Choi Sang-mok, Acting Prime Minister and Minister of Economy and Finance, was absent.
Acting Prime Minister Choi, through a New Year's address read by Kim Beom-seok, First Vice Minister of Economy and Finance, stated, "Domestic political situations, policy shifts of the new U.S. administration, and other domestic and international uncertainties have greatly expanded, and financial market volatility has also increased," adding, "In response to this more serious situation than ever before, the government will manage our economy and finance as stably as possible with extraordinary determination."
He continued, "Above all, we will spare no effort to maintain external credibility without any wavering and further strive to advance the capital market," and urged, "The financial sector should strengthen crisis response capabilities such as increasing provisions and calmly respond to market conditions by making investment decisions that help enhance national and industrial competitiveness from a long-term perspective."
He also said, "Each financial professional should act as a private international financial cooperation ambassador by closely communicating with foreign investors to promote the soundness of the Korean economy," and mentioned, "The win-win financial support plan worth 600 to 700 billion won prepared by the banking sector last month should be implemented as soon as possible to support small business owners facing difficulties."
Furthermore, Governor Lee Chang-yong stated, "Monetary policy needs to be operated flexibly and promptly considering the conflicts among policy variables such as inflation, growth, exchange rates, and household debt under unprecedented political and economic uncertainties," adding, "Based on incoming data, we will closely monitor the development of domestic and international risk factors and changes in economic trends and flexibly determine the pace of interest rate cuts."
He also expressed support for Acting Prime Minister Choi's appointment as a Constitutional Court justice. Governor Lee said, "Evaluations may differ depending on political interests, but Acting Prime Minister Choi made a difficult yet inevitable decision prioritizing the economy over politics to prevent a decline in external credibility and a governance vacuum."
Kim Byung-hwan, Chairman of the Financial Services Commission, noted that the Korean economy is currently facing political uncertainties unlike any before, which are dampening economic activities and sentiment, and said, "We will prioritize market stability and focus on the recovery of the real economy." In particular, he emphasized, "We will also strengthen efforts to maintain the credibility of our economy and finance."
Lee Bok-hyun, Governor of the Financial Supervisory Service, said, "Our economy is once again at the center of uncertainty due to domestic political instability and setbacks in expectations for interest rate cuts," and added, "I hope the financial sector will once again play a supportive role at the forefront of the economy." He continued, "Our financial industry has greatly contributed to economic stability by timely funding during difficult times," and stated, "This year, as social demands for support of the livelihood economy are expected to increase, I urge active efforts in this regard."
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