Financial Supervisory Service Holds Financial Situation Review Meeting
Immediately After Monetary Policy Board Decision
Lee Bok-hyun, Governor of the Financial Supervisory Service, emphasized on the 17th that "although the interest rate cut was delayed, the burden of high interest rates, sluggish domestic demand, and tariff shocks have increased downward pressure on the economy, necessitating proactive policy responses."
On the same day, after the Bank of Korea's decision to keep the base interest rate unchanged, Governor Lee held a financial situation review meeting with executives and stated, "Since difficulties in tariff negotiations and deteriorating trust in the United States could lead to instability in the financial system, please maintain a high level of vigilance and ensure financial stability."
Governor Lee said, "A comprehensive analysis and response are required regarding the impact on domestic industries and companies linked to the global supply chain, as well as the financial market connected to global capital flows," and urged, "Please respond systematically through the Mutual Tariff Emergency Response Task Force (TF)."
He added, "We will closely identify the field difficulties of export companies heavily affected by tariff shocks, their partner companies, and self-employed businesses near industrial complexes, and prepare financial support measures to overcome these challenges," and said, "We will support working capital to address temporary cash shortages caused by the sharp decline in orders before and after tariff implementation, preferential foreign exchange maturity and interest rates for export companies, and mid- to long-term investment funds necessary for supply chain restructuring."
He also stated, "The financial sector must secure sufficient capacity for funding support needed to respond to tariffs," and said, "The Financial Supervisory Service will actively implement necessary supervisory administrative measures such as rationalizing capital and liquidity regulations."
Furthermore, he added, "The increase in delinquencies among households, small business owners, and companies vulnerable to economic downturns and high interest rate burdens should not lead to a contraction in the financial sector's funding supply function," and urged, "Please thoroughly manage soundness by enhancing financial companies' loss absorption capacity and securing sufficient liquidity."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
