Lee Bok-hyun "Volatility Likely to Increase Further if US Reciprocal Tariffs Announced Next Month"

"We Will Comprehensively Manage the Domestic Market Situation"

Lee Bok-hyun, Governor of the Financial Supervisory Service. Provided by the Financial Supervisory Service.

The Financial Supervisory Service announced that on the morning of the 20th, following the conclusion of the U.S. Federal Open Market Committee (FOMC) meeting, it held a financial situation review meeting chaired by Governor Lee Bok-hyun to assess the impact on the domestic financial market.

Governor Lee stated, "Starting with the release of the Trade Practices Report and reciprocal tariffs on the 2nd of next month, if uncertainties in trade policy increase, the domestic and international economic and market conditions could become more challenging. It is necessary to comprehensively review and manage global economic, financial, and policy changes, as well as domestic market trends such as the Homeplus incident and real estate."

He continued, "As market volatility in some emerging countries has recently expanded, it is essential to closely monitor external conditions and thoroughly manage the risks across the market, including financial institutions' liquidity in Korean won and foreign currencies, stocks, bonds, and short-term funds."

Additionally, he said, "Regarding capital increases for securing future growth engines of competitive companies, we will actively communicate with companies to provide accurate information to investors and support the fundraising schedule without disruption through focused review. We will also closely analyze the impacts of changes in U.S. industry-specific tariffs, subsidy policies, and industry cycle shifts, strengthening cooperation with relevant ministries and communication with the financial sector to ensure timely support."

Governor Lee emphasized, "We will consistently pursue capital market advancement tasks such as strengthening shareholder protection and improving the short-selling system to create a fair and efficient market environment where all investors can enjoy the benefits of increased corporate value through long-term investment. In particular, we will thoroughly manage market risks to prevent any disruption in companies' fundraising and investment activities caused by vague anxieties stemming from incidents like the Homeplus case."

He added, "We will meticulously monitor household loan trends to ensure the smooth implementation of the government's housing market stabilization measures announced yesterday, and actively guide the small and medium financial sectors to faithfully fulfill their role as a pillar of the ordinary economy."