Finance minister hints at fresh efforts to 'reverse market sentiment'

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Finance minister hints at fresh efforts to 'reverse market sentiment'

Published: 12 Dec. 2024, 18:24 Updated: 12 Dec. 2024, 18:38

PARK EUN-JEE
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Audio report: written by reporters, read by AI

Finance Minister Choi Sang-mok talks with his Japanese counterpart, Katsunobu Kato, during a video conference in central Seoul on Thursday.

Finance Minister Choi Sang-mok hinted at a fresh round of measures aimed at “reversing market sentiment” on Thursday, underscoring persistent uncertainties amid political unrest.

His remarks were made at an emergency meeting with Bank of Korea (BOK) Gov. Rhee Chang-yong, Financial Services Commission Chairman Kim Byoung-hwan and Lee Se-hoon, senior deputy governor of the Financial Supervisory Service.

“Internal and external uncertainties persist, with political instability at home and abroad and the key interest rate decision from the United States," Choi said, “If necessary, [the Finance Ministry] will take action to reverse market sentiment.”

He declined, however, to specify further on the possible maneuvers being deployed.

The BOK has spent 14 trillion won ($9.7 billion) on repurchase contracts to inject liquidity into the market.

The finance minister offered assurances of market stability in Korea during a video conference with Japanese Finance Minister Katsunobu Kato on Thursday.

“Finance Minister Choi explained the previous cases where non-economic issues only had a temporary, limited impact,” the Finance Ministry said in a statement, adding that no concern is warranted over the safety of Japanese citizens living in or visiting Korea.

The Ministry of Trade, Industry and Energy also hosted a high-level dialogue with China on Thursday to discuss ways to bolster bilateral exchanges.

Trade Minister Cheong In-kyo met with Li Fei, China's assistant minister of commerce, in Seoul, with the two officials acknowledging that bilateral trade has increased this year despite trade uncertainties, according to the Industry Ministry.

Korea and China held two rounds of summits this year, agreeing to seek a strategic cooperative partnership.

Building on such ties, the two officials agreed to continue enhancing their countries' bilateral exchanges and cooperation in 2025.

Cheong also asked for Beijing's support for the Asia-Pacific Economic Cooperation summit, set to be held Korea's southeastern city of Gyeongju in November 2025.

Industry Minister Ahn Duk-geun also met with the governor of the U.S. state of Oklahoma on Wednesday, marking his first meeting with a senior foreign official since the botched martial law declaration.

BY PARK EUN-JEE, YONHAP [[email protected]]