In light of ongoing political instability, South Korea’s Finance Minister Choi Sang-mok announced Wednesday that the government will fully implement market stabilization measures to address the economic fallout from recent political events. The government is particularly focused on managing financial volatility caused by the brief martial law imposition by President Yoon Suk Yeol last week.
Speaking during an emergency meeting with key financial officials, including Bank of Korea (BOK) Governor Rhee Chang-yong, Choi emphasized that market monitoring and stabilization efforts would remain a top priority until confidence in the financial markets is restored.
“As uncertainties persist, we will continue to monitor both the financial and foreign exchange markets closely and take necessary actions to manage excessive volatility,” Choi said, underlining the government’s commitment to stabilizing market sentiment.
Following the martial law controversy, South Korea’s stock market experienced a sharp downturn, though some losses were recovered by Tuesday. Meanwhile, the Korean won weakened significantly, dropping below the 1,400 won mark against the U.S. dollar, signaling investor concerns.
To address liquidity pressures, the Bank of Korea has initiated repurchase (repo) operations, injecting what Choi referred to as “unlimited liquidity” into the market. These measures, he said, would continue until market conditions stabilize.
The government is also focusing on international outreach, with Choi noting that South Korean financial authorities are maintaining close communications with foreign governments, analysts, and investors. The aim is to ensure that key global stakeholders understand the current domestic political situation and reaffirm South Korea’s strong economic fundamentals.
In a separate development, Finance Minister Choi held a teleconference with U.S. Treasury Secretary Janet Yellen on Tuesday. During the call, Yellen expressed her support for South Korea’s economic stability, reaffirming the strength of bilateral economic ties between the two nations.
The government’s proactive measures are part of a broader effort to reassure both domestic and international investors amidst the political turmoil and safeguard South Korea’s economic interests.
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