Chairman Kim Byoung Hwan of the Financial Services Commission presided over a market monitoring meeting on December 9 with officials from the Financial Supervisory Service, five major financial holding companies, policy financial institutions, and related organizations and industry associations to check market situations and discuss response measures. The following is a summary of Chairman Kim’s opening remarks.

A Summary of Chairman’s Remarks

At the Ministerial Meeting on Economic Affairs held yesterday, the government made an announcement that the economic team will spare no effort in ensuring a stable management of the economy despite looming uncertainties caused by recent political situations.

In this regard, the FSC and the FSS will continue to do our parts and carry out our responsibilities in unwavering ways to ensure the maintenance of stability in our financial system and the external credibility in the financial sector.

While continuing to maintain a real-time market monitoring system around the clock, authorities are prepared to promptly implement market stabilization measures when it becomes necessary, including a KRW10 trillion stock market stabilization fund, a KRW40 trillion bond market stabilization fund, the corporate bond and commercial paper (CP) purchase program, and the supply of foreign currency liquidity through the Korea Securities Finance Corporation.

Meanwhile, authorities will seek to consistently pursue financial policy agendas according to the previously planned schedule.

While ensuring a seamless implementation of the previously introduced measures, such as the Corporate Value-up Program, establishing a system designed to prevent illegal short sale activities, and granting a license to a new internet-only bank, authorities will keep pursuing the agendas that were slated for December, such as the measures to ease the financial burden of small merchants and self-employed business owners and the indemnity health insurance reform measures.

To ensure stability in the financial system, authorities will maintain close cooperation with the financial holding companies and related organizations joining the meeting today.

Financial holding companies have played a crucial role in ensuring financial stability in crisis times based on their high levels of soundness.

In this regard, financial holding companies are asked to closely look into the liquidity and soundness conditions of their own subsidiaries, while working to also make sure that there is no contraction of economic activities from businesses and other market participants.

Since financial holding companies are at the forefront of being able to communicate with overseas stakeholders, they are asked to utilize their established networks with foreign financial companies and investors to actively communicate the stability of their own business management as well as the resilience of the domestic financial system.

Policy financial institutions and the securities finance organization are also urged to make utmost efforts in playing their parts as they are charged with implementing market stabilization measures and provide liquidity to the real economy. If there is any difficulty in the process of carrying out their duties, they are advised to promptly communicate the matter with financial authorities.

Finance is the life blood of an economy. As long as our financial system functions as it should in a stable manner, our economy can overcome any challenges.

I ask for active support and cooperation from all participating organizations.

* Please refer to the attached PDF for details.