Financial Committee launches 1,000 trillion won market stabilization plan due to unrest in the Middle East

The Financial Committee announced that to respond to the escalating turmoil in the Middle East following the death of Iran’s Supreme Leader Ayatollah Seyyed Ali Khamenei, they are prepared to immediately activate a market stabilization plan worth 1 quadrillion won. This move aims to minimize the potential impact on the domestic financial markets and real economy if the tensions in the Middle East persist long-term.

Chairman of the Financial Committee Lee Yi-won held an emergency financial market situation review meeting at the government Seoul office building, where he assessed the impact of the U.S. and Israel airstrikes on Iran on both domestic and international economies. He emphasized the need to heighten vigilance regarding the uncertain Middle East situation. The financial authorities will, led by the Director of the Financial Committee Secretariat, collaborate with the Ministry of Strategy and Finance, Bank of Korea, Financial Supervisory Service, and International Financial Center to immediately launch the “Emergency Response Financial Market Group” to monitor domestic and global market trends 24 hours a day.

Additionally, the Financial Committee has called for full cooperation between the government and financial institutions to support the real economy, aiming to minimize losses for small and medium-sized enterprises potentially affected by the Middle East situation. This measure considers additional risks such as the Strait of Hormuz blockade and is intended to maintain domestic economic stability.

The Financial Committee plans that if signs of economic recession or financial market instability are detected, they will swiftly implement the prepared market stabilization measures exceeding 1 quadrillion won to ensure the stability of the financial system. Even during domestic market holidays, they will closely monitor financial markets in Asia, Europe, and the United States to enhance response capabilities.

It is expected that these measures by the financial authorities will, depending on the future evolution of the international economy and political situation, serve as a crucial foundation for maintaining or restoring domestic market stability. This initiative aims to calm short-term unrest while strengthening the prospects for medium- and long-term economic stability.