Kyong-Ho Choo “Uncertainty in the global financial market cannot be ruled out… Market stabilization measures if necessary”

Choo Kyung-ho, Deputy Prime Minister for Economy and Minister of Strategy and Finance./News1 ⓒ News1

Deputy Prime Minister for Economy and Minister of Strategy and Finance Choo Kyung-ho said, “As we cannot rule out the possibility of a recurrence of instability in the global financial market and increased uncertainty in the real economy, such as the US small and medium-sized bank crisis, we will keep a close eye on the situation.”

“The world economy is in the process of getting out of the prolonged low interest rate situation and adapting to a new environment of high-intensity monetary tightening,” said Deputy Prime Minister Chu in a speech at the Emergency Macroeconomic and Financial Conference held at the Bank Hall in Jung-gu, Seoul on the 23rd.

He went on to say, “The government and the Bank of Korea monitor trends in the domestic and foreign financial markets in real time through a 24-hour joint inspection system with related institutions, and constantly inspect the soundness of our financial system and financial companies as a whole.” We will promptly implement market stabilization measures according to the plan,” he added.

In addition, he said, “Related organizations will thoroughly manage potential risks in financially vulnerable sectors, such as marginal companies, vulnerable real estate businesses, and multiple debtors, in conjunction with market instability, to prevent them from becoming a reality.” We need to improve our ability to absorb losses, such as by raising capital,” he explained.

Deputy Prime Minister Chu also said that the global financial unrest triggered by the Silicon Valley Bank (SVB) crisis in the United States is calming down with quick responses from each country.

“The stock market has recovered to the level in the early 2400s before this crisis as foreign buying continued, and the foreign exchange market has also eased volatility, and the exchange rate is fluctuating at the level of 1300 won,” he said. is maintained,” he explained.

“The basis for stabilizing the domestic financial market is not only the fact that the scale of domestic investment (exposure) in foreign financial institutions, which has recently been a problem, is not large, but also because the good soundness and liquidity conditions of our financial companies are supported,” he said.

(Sejong = News 1)