Apr 19 2024: On Friday, South Korea’s finance ministry announced its readiness to swiftly intervene in the foreign exchange market if excessive volatility occurs, signaling a proactive stance to maintain stability.
Finance Minister Choi Sang-mok stated that authorities are prepared to utilize a 94 trillion won ($68 billion) market stabilization program as needed to ensure stability in financial markets.
The ministry emphasized that immediate and decisive actions would be taken in response to market fluctuations that significantly diverge from economic fundamentals, particularly in the foreign exchange market.
These statements came following reports of Israel’s attack on Iran, which led to turbulence in financial markets. The Korean won experienced a 1.4% depreciation against the dollar on Friday, accompanied by a 3.1% drop in the KOSPI stock index.
Minister Choi, currently in Washington, conveyed these sentiments during an emergency telephone meeting with senior ministry officials. The discussion aimed to assess the potential domestic impacts of the escalating military conflict in the Middle East.
(Note: Conversion rate provided: $1 = 1,382.4200 won)
