South Korea's Ministry of Economy and Finance convened a joint macroeconomic and financial meeting to assess the September US Federal Open Market Committee rate increase and the effects of the Middle East war on financial and foreign exchange markets. Participants judged that the rate increase had largely been priced in and would have a limited market impact, but identified heightened government bond market volatility and rising repayment burdens for vulnerable borrowers as key domestic risks. The authorities will monitor international oil prices, global capital flows, possible further US rate increases and forthcoming monetary policy decisions by the Bank of Japan and Bank of England. They will deploy market stabilization measures if government bond market concentration becomes excessive, implement previously announced support for vulnerable borrowers and prepare supplementary measures if needed. The meeting also reviewed how the current account surplus and other changing economic conditions are affecting liquidity and financial and asset markets.
2026-09-17Ministry of Economy & Finance (South Korea)
South Korea's Ministry of Economy and Finance sees limited impact from US rate increase, signals bond market and borrower support
South Korea's Ministry of Economy and Finance assessed that the September US rate increase would have a limited market impact because it had largely been priced in. Authorities will monitor global and domestic markets, act against excessive government bond market concentration and supplement support for vulnerable borrowers if needed.