South Korea’s top financial authorities have launched a new policy consultation council aimed at strengthening cooperation and navigating increasing global uncertainties. Government officials announced the inaugural meeting of the trilateral council on Wednesday.
The council consists of Finance Minister Koo Yun-cheol, Budget Minister Park Hong-keun, and Financial Services Commission Chairman Lee Eog-weon. Their first meeting addressed potential responses to the geopolitical instability in the Middle East, according to officials.
The primary objective of the council is to foster a close coordination system and identify optimal policy combinations to effectively manage the rapidly changing macroeconomic environment impacting South Korea, officials stated.
During Wednesday’s discussions, the finance leaders emphasized the urgent need for parliamentary approval and subsequent implementation of the government’s proposed 26.2 trillion-won ($17.4 billion) supplementary budget. This measure is considered crucial to mitigating the impact of the situation in Iran on the South Korean economy, financial markets, and the welfare of vulnerable households, they added.
Addressing recent fluctuations in the foreign exchange market, Finance Minister Koo Yun-cheol commented that “excessive depreciation of the Korean won that deviates from underlying fundamentals does not serve our economy well.”
On Tuesday, the Korean won closed at 1,530.1 against the US dollar, a decrease of 14.4 won from the previous session, marking its lowest point since March 9, 2009, during the global financial crisis.
Minister Koo assured that financial authorities are proactively preparing all available policy tools, considering the “worst-case scenario” concerning the Middle East crisis, to safeguard the South Korean economy.
