S.Korea govt reassures IMF, vows to quell ‘excessive concerns’

South Korea’s Finance Minister, Choi Sang-mok assures the International Monetary Fund (IMF) of the government’s commitment to alleviating “excessive concerns” among investors in the wake of the recent martial law controversy.

Sang-mok made these remarks during his meeting with IMF Chief Economist Pierre-Olivier Gourincha in Seoul on Thursday. The meeting came in the wake of President Yoon Suk Yeol’s emergency martial law declaration earlier this week, which was swiftly lifted after the National Assembly passed a resolution reversing it. Financial authorities have since taken swift actions to stabilise local markets.

During the discussion, Sang-mok emphasised that the government is committed to maintaining transparent communication with global financial institutions, including the IMF, to calm investor concerns both domestically and internationally.

Despite these efforts, the South Korean stock market remained under pressure. The benchmark Korea Composite Stock Price Index (KOSPI) fell by 22.15 points, or 0.90 per cent, closing at 2,441.85, marking a second consecutive day of losses. Meanwhile, the South Korean won weakened to 1,415.10 against the U.S. dollar at 3:30 pm local time, a decline of 5 won from the previous day.

Gourincha, who has been the IMF’s chief economist since 2022, is in Seoul to participate in a conference hosted by the South East Asian Central Banks.

Attribution: Yonhap