South Korea’s finance minister pledged Wednesday to implement measures aimed at stabilizing household livelihoods amid persistent volatility in foreign exchange and financial markets.
Finance Minister Koo Yun-cheol made the commitment during a meeting with economy-related ministries, acknowledging that significant challenges remain despite the country posting a record current account surplus in May.
The Bank of Korea reported earlier in the day that the current account surplus widened to US$38.61 billion in May, up from $28.29 billion in April.
“Despite such positive macroeconomic indicators, volatility in foreign exchange and financial markets continues,” Koo said. “Due to the impact of the Middle East conflict, including inflationary pressure and slowing employment, the strain on people’s livelihoods persists as well.”
To revitalize growth, Koo said the government will exert all-out efforts to successfully implement three recently unveiled megaprojects centered on semiconductors, physical artificial intelligence (AI), and AI data centers.
Finance Minister Koo Yun-cheol speaks during a meeting held in Seoul on July 8, 2026, in this photo released by the Ministry of Finance and Economy. (PHOTO NOT FOR SALE) (Yonhap)
“We intend to proactively respond to changes in macroeconomic conditions, including the booming chip industry, and will soon unveil an economic growth strategy for the second half designed to boost the country’s potential growth and address economic disparity,” Koo added.
During a separate meeting focused on monitoring market conditions, Koo discussed responses to recent financial market volatility with Bank of Korea Governor Shin Hyun-song and other financial officials.
Officials noted that foreign capital outflows have contributed to recent market instability, calling for a coordinated response among relevant agencies.
“Regarding the stock market, participants assessed that profit-taking by foreign investors and institutions following sharp gains, portfolio rebalancing, and adjustments in the AI sector outlook have fueled extended volatility,” the finance ministry said in a statement.
“The participants agreed to closely review risk factors that may lead to excessive volatility in the stock market,” it added.
Attendees also concurred on the need to cultivate next-generation growth engines—such as biotechnology, defense, and space industries—to reduce the economy’s reliance on semiconductors and AI, the ministry said.
