Financial Services Commission Chairs Market Review Meeting
13.3 Trillion Won in Financial Support for Exporters
Concerns about increased volatility in the financial markets have grown following the U.S. airstrike on Iran, prompting the financial authorities to announce that a zero-tolerance policy will be applied to all types of unfair practices in the capital market, such as the dissemination of fake news or market manipulation. The authorities also emphasized plans for active financial support, particularly for small and medium-sized exporters to the Middle East who are likely to be affected by the current crisis, utilizing policy banks and other channels.
On the morning of the 3rd, Eogwon Lee, Chairman of the Financial Services Commission, held a joint "Financial Market Situation Review Meeting" related to the Middle East situation at the Government Complex Seoul in Jongno-gu, Seoul. Provided by the Financial Services Commission.
On the morning of March 3, Eogwon Lee, Chairman of the Financial Services Commission, convened a joint Financial Market Situation Review Meeting on the Middle East situation at the Government Complex Seoul at 7:30 a.m.
Participants agreed that, depending on how the Middle East situation unfolds, volatility in the financial markets-including stock prices and exchange rates-could increase, and that this could also impact the real economy.
Chairman Lee stated, "Despite the uncertainties in the Middle East region, our economy and financial markets have strong fundamentals, and the government possesses sufficient policy response capabilities. Rather than excessive anxiety about the domestic financial markets, market participants should make rational decisions based on trust in our economy." He added, "Monitor market conditions for the stability of the economy and financial markets, and proactively implement market stabilization measures if necessary."
Previously, immediately after the U.S. airstrike on Iran on March 1, the financial authorities held an emergency meeting and announced the activation of a market stabilization program worth more than 100 trillion won if needed.
Chairman Lee warned that the authorities would respond strictly to all forms of unfair trading that capitalize on investor anxiety. "Such acts cause harm to domestic and foreign investors and severely undermine trust in our capital market," he said, instructing related agencies to closely monitor and strictly crack down on all unfair practices in the capital market, such as the spread of fake news or market manipulation, applying a zero-tolerance approach.
He also announced financial support measures for small and medium-sized exporters to the Middle East. The Financial Services Commission plans to swiftly support SMEs and mid-sized companies affected by the Middle East situation through a financial support program totaling 13.3 trillion won-currently being operated by Korea Development Bank (8 trillion won), Industrial Bank of Korea (2.3 trillion won), and Korea Credit Guarantee Fund (3 trillion won)-which includes funding support and interest rate relief. Chairman Lee also instructed that counseling centers be operated to ensure that affected companies can receive support smoothly.
Going forward, the Financial Services Commission will operate a "Joint Financial Market Task Force on the Middle East Situation," headed by the Secretary General, to closely share updates on the Middle East situation with related agencies until financial market stability is restored, and will continue its 24-hour monitoring system.
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