Seoul: The government announced on Monday its commitment to take prompt and decisive action in response to any excessive market volatility arising from escalating tensions in the Middle East, following an Israeli preemptive strike on Iran.
According to Yonhap News Agency, the decision was reached during a virtual meeting that included senior officials from the finance, foreign, and industry ministries. Representatives from the Bank of Korea, the Financial Services Commission, and the Financial Supervisory Service also participated in the discussions, as reported by the Ministry of Economy and Finance.
"In the event of excessive market volatility that is deemed to be detached from the country's economic fundamentals, authorities plan to take prompt and decisive action in accordance with contingency plans," stated the ministry.
Meeting participants highlighted the necessity of closely monitoring both financial markets and the real economy in light of the ongoing military clashes between Israel and Iran over the weekend, coupled with the high uncertainty surrounding future developments.
Authorities also committed to ensuring stable energy supply management and minimizing disruptions to trade and logistics, the ministry added. Measures will include providing liquidity support for exporters affected by the conflict in the Middle East and securing dedicated shipping space for small and medium-sized enterprises.