[US-Iran Airstrikes] Government Holds Consecutive Joint Review Meetings: "Mixed Trends in Financial Markets... Close Monitoring"

Results Briefing of Interdepartmental Meeting

"Daily Monitoring to Continue, Situation-Specific Measures to Be Taken"

"No Korean Vessels Currently Transiting the Strait of Hormuz"

Lee Hyungil, First Vice Minister of the Ministry of Finance and Economy (center), is attending a briefing on the "Emergency Inter-Ministerial Meeting Related to the Middle East Situation Assessment" on the 2nd at the Joint Briefing Room of the Government Seoul Office in Jongno-gu, Seoul. Photo by Yonhap News

Hyungil Lee, First Vice Minister of the Ministry of Strategy and Finance, commented on March 2 regarding Middle East risks stemming from the U.S. and Israeli airstrikes on Iran, stating, "International oil prices have risen, but the increase has narrowed compared to immediately after market opening, and the impact on the stock and bond markets has been relatively limited."

Vice Minister Lee made these remarks during a results briefing following the "Emergency Interdepartmental Meeting on the Middle East Situation," which was presided over by Prime Minister Minseok Kim and held at the Government Seoul Complex that afternoon.

He assessed, "In the international financial markets, a growing preference for safe-haven assets has led to a depreciation of Asian currencies and mixed trends in stock prices." He added that currencies considered safe-haven assets, such as the U.S. dollar and the Swiss franc, have strengthened, while Asian currencies-including the yuan, the yen, and the Taiwan dollar-have weakened.

Regarding the stock market, he noted that the Nikkei index in Japan declined, the Australian stock market remained flat, and the Shanghai Composite Index in China rose, resulting in a mixed picture.

Vice Minister Lee also stated, "Currently, the European stock markets, which have just opened, are showing a further decline," and added, "Given the continued high level of uncertainty, we will hold another joint interdepartmental review meeting before the opening of the domestic stock market on the morning of March 3 to assess the situation."

On the 28th (local time), after an airstrike by Israel and the United States on Iran, Iran launched missiles at Israel in retaliation, and Israeli firefighters are extinguishing vehicle fires at the missile impact site. Photo by Reuters Yonhap News

He emphasized, "We plan to monitor the situation around the clock, focusing on the joint emergency response team, to track developments as well as the impact on domestic financial markets and the real economy. If any abnormal signs are detected, we will respond swiftly and in close cooperation with relevant agencies according to our contingency plans tailored to each scenario."

When asked about the potential impact on financial markets going forward, he replied, "It depends on how prolonged and persistent the situation becomes," and continued, "It is difficult to make easy predictions, so we will monitor the situation daily and take required actions as needed."

Regarding damage to small and medium-sized enterprises, he explained, "We are currently receiving reports of difficulties through the Ministry of SMEs and Startups and the Export Support Center website. We will guide businesses to report difficulties via the emergency contact network for the Middle East situation, assess the status of damages, and then provide tailored support."

On the possibility of the Strait of Hormuz being closed and the logistics situation, he added, "We have recommended, via official notice, that shipping associations refrain from operations in Middle Eastern waters. We have also asked ships entering the Strait of Hormuz to wait and take safety precautions." He further stated, "So far, it has been confirmed that there are no Korean vessels currently transiting the Strait of Hormuz."

This content was produced with the assistance of AI translation services.