Authorities, verbal intervention in exchange rates... Choi Sang-mok "Active stabilization measures against excessive volatility"

As the exchange rate soared in the aftermath of Trump's election, the financial and foreign exchange authorities intervened verbally.

Deputy Prime Minister for Economy Choi Sang-mok has asked authorities to implement active market stabilization measures in a timely and prompt manner if market volatility is overstretched, the ministry said.

Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok made the remarks at an emergency meeting on macroeconomic and financial issues with the Governor of the Bank of Korea, the Chairman of the Financial Services Commission, the Senior Secretary for Economic Affairs, and the Senior Vice President of the Financial Supervisory Service at the Federation of Korean Banks.

Deputy Prime Minister Choi stressed that he will keep a close eye on the market situation with special tension centered on the 24-hour joint inspection system of related agencies, and that related agencies should also do their best to maintain the cooperation and response system according to the situation-specific response plan.

He also said that the current market stabilization programs will be extended to the previous level next year, urging the government to operate up to 37.6 trillion won worth of liquidity supply programs and up to 53.7 trillion won worth of PF soft landing support programs to stabilize the bond and short-term funds markets.

Participants shared their awareness of the need for industrial policies, including support for industries that are expected to face difficulties following the launch of the new U.S. government, and decided to review efforts to improve the fundamental constitution of our stock market, including improving corporate governance, as well as ways to improve structural foreign exchange supply and demand.

Participants shared the perception that volatility was excessive due to uncertainty over changes in policy stance in the transitional situation from the U.S. presidential election to the launch of the new government, the Ministry of Economy and Finance said.