South Korea Financial Stability Holds as Firms Pass Crisis Scenarios

South Korea financial stability remains intact as the country’s financial institutions have sufficient capacity to withstand crisis scenarios despite volatility in financial and foreign exchange markets, Finance Minister Koo Yun-cheol said.

Koo made the remarks after a macroeconomic policy meeting with Bank of Korea Governor Shin Hyun-song and the heads of financial regulators.

He said volatility in government bond yields and the won-dollar exchange rate has persisted as the Middle East conflict continues.

Stress tests showed financial institutions could respond even under crisis assumptions involving oil prices and exchange rates, supporting confidence in South Korea financial stability.

Authorities said they will maintain round-the-clock monitoring and take stabilisation measures if needed to manage external shocks.