South Korea’s Financial Services Commission held a market monitoring meeting and decided to continue operating its market stabilization programs in 2026, citing the risk of renewed volatility despite a broadly improved backdrop in the second half of 2025. Plans for 2026 include making available up to KRW37.6 trillion in liquidity through policy financial institutions including KDB, IBK and KODIT to support the corporate bond and short-term money markets, while real estate project finance restructuring support programs will continue at up to KRW60.9 trillion. The FSC noted that the corporate bond market stabilization program bought KRW11.8 trillion of low-rated corporate bonds and commercial paper in 2025, and flagged recent upward pressure in government bond yields and increased foreign exchange volatility as key areas to watch. The FSC will keep holding market monitoring meetings with relevant authorities and market experts on an ongoing basis and stand ready to deploy stabilization measures if needed.

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