Seoul: The head of South Korea's financial regulator vowed Thursday to take preemptive measures to ensure financial stability amid a slew of headwinds, such as high rates and policy shifts by the Trump administration. Lee Bok-hyun, governor of the Financial Supervisory Service (FSS), also stressed the need to further develop and promote the local financial market, making it work in tune with the global standards.
According to Yonhap News Agency, Lee Bok-hyun highlighted the array of uncertainties facing the economy and financial markets, including political uncertainties that contribute to market volatility and economic downside risks. He made these remarks during the FSS SPEAKS 2025, an annual forum designed to enhance communication with foreign financial firms.
The forum was attended by some 230 officials and executives from foreign embassies and financial firms, with ambassadors from countries such as China, Britain, Japan, Italy, the Netherlands, and Switzerland in attendance. Lee emphasized that the Financial Supervisory Service will proactively prepare for uncertainties both domestically and internationally. The focus will be on maintaining financial stability through the management of household debts and the supervision of the soundness of financial firms.
Furthermore, Lee stated that the agency will strive for market advancement by updating and revamping regulations related to initial public offerings (IPOs) and other systems. Special attention will be directed towards the resumption of stock short selling, which is set to occur next week. The country had previously imposed a temporary ban on stock short selling in November 2023 after discovering several naked short selling violations involving global investment banks. This suspension is scheduled to be lifted on Monday.