South Korea's Ministry of Economy and Finance convened the first “Macro Fiscal-Financial Meeting”, launching a new coordination forum to align budget, tax, financial and foreign exchange policy responses as the Middle East war drives heightened macroeconomic uncertainty. With uncertainty over the Middle East situation continuing into a fifth week, participants agreed that swift passage and execution of the supplementary budget proposal submitted to the National Assembly is important to mitigate spillovers to the real economy, financial markets and vulnerable groups. The authorities committed to intensive communication and cooperation with the National Assembly during deliberations, and to complete advance preparations so measures can be implemented immediately once the budget is finalized. They also agreed to proactively review available policy tools and be ready to respond quickly if the conflict becomes prolonged. The forum will meet monthly to discuss macroeconomic issues as well as structural challenges such as polarization and declining potential growth, with a view to delivering consistent and rapid macro policy coordination.
Ministry of Economy & Finance (South Korea)2026-04-01
South Korea's Ministry of Economy and Finance launches a Macro Fiscal-Financial Meeting to coordinate policy responses to the Middle East war
The Ministry of Economy and Finance of South Korea held the first “Macro Fiscal-Financial Meeting”, establishing a new monthly forum to align budget, tax, financial and foreign exchange policy amid heightened uncertainty from the Middle East conflict. Participants emphasized swift passage and execution of the supplementary budget to cushion the real economy, financial markets and vulnerable groups, and agreed to proactively review policy tools and prepare for rapid implementation if the conflict is prolonged.