FSC activates emergency response team for 'Middle East risk'..."Ready to deploy over 100 trillion won in stabilization measures immediately"

[Financial News] On the 1st, Lee Eog-weon, Chair of the Financial Services Commission, presided over an emergency financial market review meeting in response to U.S. and Israeli airstrikes on the Islamic Republic of Iran (Iran) and decided to immediately activate an Emergency Response Financial Markets Team. The financial authorities will maintain a 24-hour monitoring system in preparation for a prolonged crisis and stand ready to implement market stabilization programs worth over 100 trillion won whenever necessary. Lee also ordered close monitoring of global market trends in Asia, Europe, and the United States (U.S.) on the 2nd, when domestic markets will be closed.
Lee warned, "Uncertainty surrounding the situation in the Middle East is very high, and if the crisis drags on, the impact could spread beyond domestic financial markets to the real economy as well," calling for heightened vigilance.
In line with this, the Emergency Response Financial Markets Team, headed by the Secretary General of the Financial Services Commission and joined by the Ministry of Economy and Finance, the Bank of Korea (BOK), the Financial Supervisory Service (FSS), and the Korea Center for International Finance (KCIF), was put into operation immediately. This team is the unit within the Pan-government Joint Emergency Response Team, led overall by the Ministry of Economy and Finance, that is dedicated to the financial sector. It will share information on Middle East–related risks in real time and monitor market conditions around the clock.
The financial authorities also reviewed their contingency plans in case market volatility increases. Lee instructed officials to swiftly implement the already prepared market stabilization program, valued at "over 100 trillion won," if needed.
Measures to minimize damage to the real economy were also emphasized. In particular, Lee called for thorough support for small and medium-sized enterprises that could be hit directly in terms of exports, imports, and supply chains, for example if the Strait of Hormuz were to be blocked.
With domestic financial markets closed on the 2nd, the financial authorities are focusing on reactions in overseas markets. Lee ordered close monitoring of volatility in major markets in Asia, Europe, and the U.S. while the Korean stock and foreign exchange markets are shut, and directed that emergency market review meetings be convened in a timely manner with the FSS and other relevant institutions to minimize any shock when trading resumes.
elikim@fnnews.com Reporter Kim Mi-hee Reporter