SEOUL (Reuters) – South Korea’s Finance Ministry vowed on Sunday to continue quickly implementing market stabilization measures as needed to support the economy after President Yoon Suk Yeol was impeached over his brief imposition of martial law.
The ministry said it will actively communicate with parliament to keep the economy stable, adding that it plans to announce its two-year policy plan before the end of this year.
The leader of the main opposition Democratic Party, Lee Jae-myung, convened a National Governance Stability Council composed of the government and parliament to discuss public finances, the economy and livelihoods.
The Bank of Korea said in a statement that it would use all available policy instruments together with the government to respond and prevent any escalation of volatility in financial and foreign exchange markets.
The bank said there is a need to respond more actively to the economic impact than in past presidential impeachment periods due to greater challenges in external conditions, such as greater uncertainty in the business environment and intensified global competition in key industries.
South Korea’s financial regulator said in a statement that financial markets are expected to stabilize as recent political developments are considered temporary shocks, but it will expand funds to stabilize the market if necessary.