Strengthening Monitoring of the Financial Sector and Real Economy at Home and Abroad
Deputy Prime Minister Kyungho Choo convened a roundtable in Seoul on August 20 to discuss pending issues in the macroeconomic and financial sector1 and their implications.
The attendees shared views that uncertainties of the global financial market have been rising due to China’s real estate crisis and the increased volatility in the US Treasury market. They also agreed that although the direct impact on the Korean economy remains limited2 so far, an impact on the domestic financial market cannot be ruled out due to the potential developments of risks in the future, and thus stricter monitoring of the financial sector and real economy at home and abroad is crucial.
In particular, through the pan-governmental inspection team for the economic situation3 running 24 hours which has been in operation since the second half of last year, the authorities will further enhance real-time monitoring of major risk factors and re-examine the situation-specific response plans, while promptly enforcing market stabilization measures in collaboration with relevant agencies if necessary.
1 The meeting was attended by the Bank of Korea (BOK) Governor, Chairman of the Financial Services Commission (FSC), the Financial Supervisory Service (FSS) Governor and Senior Presidential Secretary for Economic Affairs
2 The exposure of Korean financial companies to Chinses real estate development firms is not at a significant level (approximately 0.4 trillion won).
3 The team consists of Deputy Minister of the Ministry of Economy and Finance, Standing Member of the FSC, Assistant Senior Deputy Governor of the FSS and experts from the Korea Center for
International Finance (KCIF)
please refer to the attached files.