South Korea's deputy finance minister signals vigilance on market volatility

South Korea's Deputy Prime Minister and Minister of Economy and Finance, Koo Yun-cheol, has emphasized the government's commitment to actively managing increased volatility in financial and foreign exchange markets.

Speaking at an emergency economic headquarters meeting on June 5, Koo stated that the government is responding with "special vigilance" to the current situation. He acknowledged the challenging global environment, including the Middle East conflict, but highlighted visible economic progress. This includes the OECD's forecast of 2.6% economic growth for the year and a current account surplus of $28.29 billion in April, attributed to the collective efforts of the public, businesses, and the government.

Despite these positive indicators, Koo noted the recent expansion of volatility in financial and foreign exchange markets, alongside difficulties faced by the public regarding living costs and prices. "We are responding with special vigilance," he reiterated.

Looking ahead, the government aims to further solidify the real economy, particularly in light of factors like the Middle East conflict's impact. Simultaneously, Koo announced a focus on "structural innovation for economic leap," including "super-innovation economy" initiatives, regional investment, structural reforms, and efforts to resolve polarization.

The minister stressed the importance of addressing these structural challenges to ensure the nation's economic advancement.