S. Korea’s c. bank pledges to maintain financial stability

South Korea’s central bank pledged to stabilise financial markets and emphasised the need for consistent implementation of key fiscal and economic measures following the impeachment of president Yoon Suk Yeol.

The Bank of Korea (BOK) plans to use all policy tools with the government to prevent financial and foreign exchange market volatility following Yoon’s unsuccessful martial law decree.

The BOK compared the current impeachment situation with past presidents and noted that the latest case faces greater external challenges, such as increased uncertainty in the trading environment and intensified global competition.

“Should these external factors overlap with domestic ones, their impact may amplify,” South Korea’s central bank said, calling for an interventionist approach to improving the economy.

Following Yoon’s declaration of martial law, the stock market plummeted and the South Korean won depreciated against the dollar to its lowest level since the global financial crisis.

The central bank issued a statement following the parliament’s decision to remove Yoon from office. The Prime Minister, acting as president, has instructed advisers to closely monitor financial markets and take quick action if necessary.

Attribution: Bloomberg

Subediting: M. S. Salama