Seoul: South Korea's top economic policymakers have warned that volatility in the country's financial and foreign exchange markets is expected to persist, with officials pledging to maintain close monitoring of the situation with heightened vigilance.
According to Yonhap News Agency, the remarks were made during an emergency meeting convened by Finance Minister Choi Sang-mok. The meeting also included the heads of the Bank of Korea, the Financial Services Commission, and the Financial Supervisory Service. The Ministry of Economy and Finance reported that the participants assessed external factors as the primary drivers of the current volatility in the financial markets, rather than domestic issues.
On Monday, the benchmark Korea Composite Stock Price Index (KOSPI) fell by more than 5.5 percent, marking the fourth consecutive day of losses. Investors were unsettled by concerns over an escalating global trade war, which has been exacerbated by reciprocal tariffs imposed by the United States. The South Korean won also saw its sharpest decline against the U.S. dollar since the onset of the COVID-19 pandemic.
The economic policymakers acknowledged the likelihood of continued fluctuations in domestic financial and foreign exchange markets. They agreed to maintain heightened vigilance and to keep a close watch on market conditions moving forward, as stated by the ministry.