Finance Minister Koo Yun-cheol convened a meeting on domestic market conditions at the Seoul Government Complex on Wednesday. (Courtesy of Ministry of Finance and Economy)
On Wednesday, South Korea’s finance minister pledged to implement measures aimed at shielding household livelihoods from persistent fluctuations in foreign exchange and financial markets.
Minister Koo Yun-cheol made the commitment during a session with economic ministries, warning that significant challenges persist even after May’s record-high current account surplus.
Earlier that morning, the Bank of Korea reported a current account surplus of $38.61 billion for May, rising from $28.29 billion in April.
“Notwithstanding these favorable macroeconomic signals, exchange-rate and financial market instability endures,” Koo stated. “The spillover from the Middle East conflict—ranging from inflationary strains to decelerating job growth—continues to weigh on public welfare.”
To reinvigorate expansion, Koo emphasized that the government will spare no effort in executing three recently announced megaprojects designed to transform the nation through semiconductors, physical AI, and AI data centers.
“We plan to respond proactively to shifting macroeconomic landscapes—such as the surging semiconductor sector—and will soon reveal a second-half growth strategy to boost potential output and narrow inequality,” he added.
In a separate market-monitoring gathering, Koo conferred with BOK Governor Shin Hyun-song and other financial regulators on tactics to mitigate recent volatility.
Officials observed that outbound foreign capital flows have exacerbated market swings, urging a coordinated inter-agency response.
According to the ministry, participants attributed prolonged stock market turbulence to profit-taking by foreign and institutional investors after recent rallies, portfolio rebalancing, and revised forecasts for the AI cycle.
“Participants agreed to scrutinize risk factors that could trigger excessive equity market volatility,” the ministry noted.
The ministry further stated that attendees concurred on cultivating next-generation drivers—including biotechnology, defense, and space—to reduce overreliance on chips and artificial intelligence.
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