South Korea Financial Services Commission convenes Middle East market monitoring meeting and readies KRW100 trillion-plus stabilisation contingency plans

The South Korea Financial Services Commission held a meeting with related authorities and financial institutions to assess financial market conditions amid heightened geopolitical uncertainty in the Middle East and to align on response measures. Participants agreed to maintain close coordination and remain on alert for potential volatility that could spill over to the real economy, with the government, the Bank of Korea and the Financial Supervisory Service prepared to implement contingency plans including market stabilisation programmes worth more than KRW100 trillion if needed. Officials noted that the prior day’s sharp rise in international oil prices appeared to have eased, while major equity markets were mostly lower or flat and safe-haven demand was strengthening gold and the US dollar. The financial authorities also said they will intensify surveillance for market manipulation and other unfair trading in capital markets and pursue stern penalties. Separately, the FSC emphasised targeted support for small and medium-sized exporters exposed to the conflict-affected region, directing policy financial institutions to actively deploy existing financial assistance programmes totalling KRW13.3 trillion and urging the Korea Development Bank, the Industrial Bank of Korea and the Korea Credit Guarantee Fund to operate consultation desks to facilitate support. The FSC plans to establish and run a joint taskforce on the Middle East conflict to enable real-time information sharing among authorities and round-the-clock monitoring.