F4 Meeting: "US and Japanese Government Bond Market Volatility Rising... Thorough Review of Domestic Impact"

Kim Beomseok, Acting Minister and First Vice Minister of the Ministry of Economy and Finance, is taking a commemorative photo with attendees before the start of the Macroeconomic and Financial Issues Meeting held at the Bankers' Hall in Jung-gu, Seoul, on the morning of the 23rd. From left: Lee Bokhyun, Governor of the Financial Supervisory Service; Lee Changyong, Governor of the Bank of Korea; Kim Beomseok, Acting Minister; Kim Byunghwan, Chairman of the Financial Services Commission.

Kim Beomseok, Acting Minister and First Vice Minister of the Ministry of Economy and Finance, stated on the 23rd, "Recently, volatility in the US and Japanese government bond markets has been increasing," adding, "We will closely monitor the impact on the domestic financial and foreign exchange markets, focusing on the Macroeconomic and Financial Issues Meeting (F4 Meeting)."

At the F4 Meeting held that day, Acting Minister Kim said, "External uncertainties remain, including tariff negotiations between major countries and the United States, as well as the economic situation in the US." The meeting was attended by Lee Changyong, Governor of the Bank of Korea; Kim Byunghwan, Chairman of the Financial Services Commission; and Lee Bokhyun, Governor of the Financial Supervisory Service.

The won-dollar exchange rate closed at 1,381.3 won in the previous day's weekly trading, down 5.9 won from the previous session, marking the lowest level in six and a half months. This reflected the global weakening of the dollar, as concerns over the rapidly increasing US fiscal deficit spread following weak demand at the auction for 20-year US Treasury bonds.

The won-dollar exchange rate, which started in the early 1,390-won range at the beginning of the session, fell further as the dollar weakened more sharply. As Asian currencies strengthened overall amid caution about exchange rate discussions at the G7 finance ministers' meeting, the won-dollar exchange rate at one point dropped to near 1,384 won before closing at 1,387.2 won.

The participants assessed that the ongoing efforts to resolve and restructure real estate project financing (PF) have achieved meaningful results in guiding the orderly soft landing of real estate PF. They also agreed to continue discussing measures at the F4 Meeting to accelerate the resolution and restructuring process for certain projects where the cleanup of bad debts has been insufficient.