SEOUL (Reuters) – South Korea’s finance minister said on Monday that authorities would take pre-emptive action if necessary to stabilize local financial markets amid heightened volatility due to external factors.
Minister Choo Kyung-ho made the remarks at the start of a scheduled meeting of senior economic and financial officials, which also included the heads of the central bank and two financial market regulators.
The meeting came amid aggressive policy tightening by the Federal Reserve and other major central banks and signs of a slowdown in most major economies, pulling the won, bonds and stocks lower.
He did not elaborate on possible actions by the authorities.
External factors were mainly responsible for heightened volatility in the local market, Choo said, adding that the country’s economic fundamentals remained strong, such as the current account balance still in surplus.
