South Korea vows enhanced market monitoring, swift responses amid Mideast crisis

IANS June 19, 2025 309 views

South Korea has ramped up economic monitoring as tensions in the Middle East and US tariff policies heighten market risks. Acting Finance Minister Lee Hyoung-il confirmed contingency plans are in place, including a 24-hour surveillance system. The Bank of Korea also warned of increased volatility due to geopolitical risks and Fed policy uncertainty. Authorities remain on high alert to stabilize markets if needed.

"The government will respond swiftly, in close coordination with relevant agencies, if necessary, in accordance with contingency plans based on various scenarios." – Lee Hyoung-il
Seoul, June 19: The government will enhance monitoring of the economy and financial markets and devise appropriate responses based on contingency plans amid escalating tensions in the Middle East, the finance ministry here said on Thursday.

Key Points

1

South Korea activates 24-hour market monitoring amid Israel-Iran conflict

2

Officials warn of rising volatility in commodity and financial markets

3

BOK pledges vigilance over Fed policy and tariff uncertainties

4

Emergency response teams coordinate contingency plans

The pledge was made during a meeting on macroeconomic issues presided over by Acting Finance Minister Lee Hyoung-il and attended by Bank of Korea (BOK) Deputy Gov. Ryoo Sang-dai, along with senior officials from the Financial Services Commission and the Financial Supervisory Service, according to the Ministry of Economy and Finance.

"Following Israel's airstrike on Iran, volatility in commodity prices and global financial markets has increased," Lee said, reports Yonhap news agency.

"The domestic financial market remains relatively stable, but uncertainty remains high due to the Israel-Iran conflict, as well as unclear U.S. tariff policies," he added.

In response, the government is "on alert, closely monitoring the situation and continuing to operate a 24-hour monitoring system," Lee said, adding that a joint emergency response team involving relevant agencies is currently in operation.

"The government will respond swiftly, in close coordination with relevant agencies, if necessary, in accordance with contingency plans based on various scenarios," Lee stated.

The central bank reaffirmed efforts to help stabilise the market in its own separate meeting.

"Geopolitical risks have significantly increased due to the recent military clash between Iran and Israel and concerns over potential escalation. We will maintain heightened vigilance and closely monitor market conditions in light of the possibility of increased volatility in financial and foreign exchange markets," BOK Deputy Gov. Park Jong-woo said.

Regarding the recent U.S. Federal Open Market Committee (FOMC) meeting, Park noted that uncertainty surrounding the future path of U.S. monetary policy has grown.

"Fed Chair Jerome Powell indicated a cautious approach to policy decisions, taking into account such factors as U.S. tariff policy, while projections among Fed officials remain widely divergent," Park said.

The Fed kept its key interest rate unchanged and maintained its forecast of two rate cuts this year, as it continues to monitor the effects of President Donald Trump's tariff measures and the escalating Israel-Iran conflict.

—IANS

Reader Comments

Here are 5 diverse Indian perspective comments on the South Korea economic monitoring news:
R
Rahul K.
Smart move by South Korea! 👏 India should also strengthen its economic monitoring systems given how global conflicts affect our markets. Remember how crude oil prices shot up during Russia-Ukraine war? Our RBI and Finance Ministry need similar 24/7 vigilance.
P
Priya M.
Interesting to see how Asian economies are responding to Western conflicts. While Korea is focusing on monitoring, I wish our government would be more proactive in creating buffer policies for such situations. Our middle class always bears the brunt of global market fluctuations.
A
Arjun S.
The US Fed's uncertainty is worrying for all emerging markets including India. When dollar strengthens, our rupee takes a hit. Maybe time for BRICS nations to strengthen alternative financial systems? Just a thought...
S
Sunita R.
Korea's approach seems very systematic. In India we often react after the crisis hits. Global conflicts affect everything from petrol prices to our IT sector jobs. Hope our policymakers are taking notes! #BePrepared
V
Vikram J.
While monitoring is good, countries need to reduce dependence on dollar-dominated systems. The Middle East crisis shows again how local conflicts create global economic tremors. Time for India to push for rupee trade agreements with friendly nations.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Your email won't be published


Disclaimer: Comments here reflect the author's views alone. Insulting or using offensive language against individuals, communities, religion, or the nation is illegal.

Tags:
South Korea economy Middle East crisis financial markets Bank of Korea Lee Hyoung-il Israel-Iran conflict