South Korea’s government is set to hold an overseas investor relations session to outline key market-boosting measures and update the international community on the nation’s economic conditions, Finance Minister Choi Sang-mok announced on Monday. The session will aim to stabilize investor sentiment following recent political instability and showcase the country’s economic resilience.
At an emergency meeting on macroeconomic and financial issues, Choi outlined the government’s strategy to enhance market confidence, including accelerating policies designed to boost the stock market, secure inclusion of South Korean government bonds in the World Government Bond Index (WGBI), and advance the capital and foreign exchange markets. “We will continue our 24-hour monitoring of financial and foreign exchange markets,” Choi emphasized, adding that efforts to maintain Korea’s external creditworthiness will be intensified. These efforts include the hosting of investor relations events, the appointment of ambassadors for international finance and investment cooperation, and a task force for foreign investor support.
South Korea’s inclusion in the FTSE Russell’s WGBI, set to take effect in November 2025, is expected to bring substantial foreign inflows. According to the National Pension Service (NPS), the country’s largest institutional investor, South Korea could see an influx of $56 billion in foreign funds once the country is added to the prestigious bond index.
The announcement comes amidst signs of a market rebound, with South Korea’s main Kospi stock index rising 0.7% to 2,512.95 and the tech-heavy Kosdaq gaining 1% to 700.29. The Korean won also showed strength, rising to 1,428.70 per U.S. dollar.
Minister Choi’s remarks were made during the F4 Meeting, which included senior officials such as Bank of Korea Governor Lee Chang-yong, Financial Services Commission Chairman Kim Byoung-hwan, and Financial Supervisory Service Deputy Governor Lee Se-hoon. The meeting follows the impeachment of President Yoon Suk-yeol on Saturday, which led to a surge in political protests but also helped reduce political uncertainty. Analysts suggest that the Korean won may now recover from its two-year low against the dollar, as the political situation stabilizes.
In a related development, Choi attended the ASEAN+3 Macroeconomic Research Office (AMRO) meeting in Seoul, where he reassured international counterparts that South Korea’s political crisis had been resolved. He highlighted the country’s stable economic system and emergency response framework, adding that the government would work closely with both ruling and opposition parties to implement key economic policies smoothly.
The AMRO, founded in 2011, is focused on promoting macroeconomic stability in Asia and includes members from the 10 countries of the Association of Southeast Asian Nations (ASEAN), as well as China, Japan, and Korea.
Despite the ongoing political challenges, global credit agencies have reaffirmed South Korea’s stable economic fundamentals. On Friday, Moody’s, Fitch, and S&P Global all maintained their credit ratings for South Korea, reassuring investors that the political turmoil surrounding President Yoon’s impeachment would not impact the country’s financial outlook.
As South Korea continues to navigate through its political upheaval, the government remains focused on stabilizing the domestic economy, with both the finance minister and the central bank chief pledging to take necessary actions to ensure economic stability in the coming months.
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