President Lee Jae-myung holds capital market meeting following Middle East-driven volatility

President Lee Jae-myung presided over a meeting on March 18 with financial authorities and investors to address capital market volatility from ongoing Middle East tensions—building on last week's emergency economic review—and discuss structural reforms. Attendees included Financial Services Commission Chairman Lee Eog-won and Financial Supervisory Service Governor Lee Chan-jin.

Following last week's emergency economic meeting on Middle East tensions, President Lee Jae-myung convened a gathering on March 18 with key financial authorities and investors to review capital market reforms and stabilization measures, according to officials and reports from The Korea Times and Yonhap News Agency.

Participants included Financial Services Commission Chairman Lee Eog-won, Financial Supervisory Service Governor Lee Chan-jin, as well as investors and representatives from KOSDAQ and KONEX-listed companies. Discussions focused on countermeasures to market volatility triggered by recent Middle East developments, alongside reforms to enhance market structure: expanding shareholders' rights, fostering innovation, and improving public access.

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South Korean officials in a control room monitoring forex and oil markets amid Mideast crisis and US rate freeze.
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South Korea to monitor FX closely amid Mideast crisis, U.S. rate freeze

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South Korea's government vowed to deploy all resources to stabilize financial markets amid escalating Middle East tensions and the U.S. Federal Reserve's rate freeze. Finance Minister Koo Yun-cheol emphasized 24-hour monitoring of foreign exchange markets with timely interventions if needed. Authorities also raised the crude oil supply disruption alert to Level 2 and secured 24 million barrels from the UAE.

President Lee Jae Myung will preside over an emergency meeting with related ministries on Monday to review the economic impact from heightened tensions in the Middle East and discuss response measures, Cheong Wa Dae said Sunday. The meeting will focus on global financial markets and oil prices. South Korea, heavily reliant on energy imports, is particularly vulnerable to external price shocks.

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President Lee Jae Myung is set to meet leaders of the ruling and main opposition parties on Tuesday to discuss measures to mitigate economic fallout from the Middle East war. The gathering at Cheong Wa Dae includes key figures from the Democratic Party of Korea and People Power Party, marking the first such meeting since September last year.

Finance Minister Koo Yun-cheol said Friday that South Korea's economy continues to maintain solid fundamentals despite the Middle East crisis. He pledged the government will keep an emergency posture until uncertainties subside.

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South Korea's Finance Minister Koo Yun-cheol and US Treasury Secretary Scott Bessent agreed in Washington that excessive volatility in the Korean won against the dollar is undesirable. Seoul's finance ministry said the two will continue consultations on foreign exchange market trends.

South Korea's Bank of Korea unanimously kept its benchmark interest rate unchanged at 2.5 percent on April 10, marking the seventh consecutive hold since July 2025 amid high uncertainty from the Middle East war, which has fueled inflation risks, growth slowdowns, and won weakness. Governor Rhee Chang-yong noted the won could strengthen quickly if tensions ease. The next policy meeting is May 28.

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