South Korea Ministry of Economy and Finance keeps 24-hour market monitoring as stress tests show financial firms have sufficient crisis capacity

South Korea's Ministry of Economy and Finance published the outcome of an expanded macroeconomic and financial meeting with the Bank of Korea, Financial Services Commission and Financial Supervisory Service after the US Federal Open Market Committee kept rates unchanged and amid continued uncertainty linked to the Middle East war. The authorities judged that volatility in domestic financial and foreign exchange markets is still elevated, but that stress tests indicate Korean financial firms have sufficient capacity to respond even under crisis scenarios involving oil prices and exchange rates. They agreed to maintain 24-hour market monitoring and to take stabilisation measures promptly if needed. Participants assessed the Federal Reserve's hold as in line with market expectations and said the US economy remains resilient, although the future rate path is still uncertain because of the Middle East situation. Global markets reacted with higher yields, a stronger USD and weaker equities, while in South Korea first quarter growth has continued to improve and the KOSPI remains above its pre-war level even as government bond yields and the KRW exchange rate remain volatile. Authorities will also closely monitor sectors that are sensitive to the war, including refining, petrochemicals and construction, and expand financial policy support where raw material supply disruptions or profitability pressures emerge. The ministry also said it will work with financial institutions to prepare the 24-hour foreign exchange market opening and the offshore KRW settlement system without disruption, accelerate broader efforts to improve the structure of foreign exchange and financial markets, and strengthen policy coordination and consultation channels across the government, central bank and financial authorities.