Finance Minister Pledges Immediate Action to Address Market Volatility Amid Global Tensions

SEOUL: Finance Minister Choi Sang-mok has committed to enhancing market oversight and taking prompt action against unwarranted financial volatility in response to weak economic growth and global uncertainties, his office announced on Monday. This pledge comes as South Korea's GDP recorded a modest 0.1 percent growth in the third quarter, falling short of market expectations. According to Yonhap News Agency, Choi's statements were made during a meeting with economy-related ministers in Seoul. He emphasized the government's focus on identifying economic uncertainties revealed by the latest GDP figures and closely examining both domestic and international market conditions. Among the key risks identified by the minister are the impending U.S. presidential election, the economic situations in major global economies, and ongoing tensions in the Middle East. Choi stated that the government is prepared to address any excessive volatility in the financial and foreign exchange markets through its contingency plans a nd in coordination with relevant agencies. This announcement follows a notable depreciation of the Korean won, which recently dropped to its lowest level in approximately four months, trading at 1,388.7 won against the U.S. dollar on Friday, before slightly recovering to 1,385 won on Monday. In addition to addressing market volatility, Choi highlighted the importance of bolstering the semiconductor industry's competitiveness amidst intense global competition. He promised further support measures aimed at developing talent and enhancing infrastructure. Separately, Bank of Korea Deputy Governor Ryoo Sang-dai expressed concerns over potential risk-averse behavior in global markets, contingent on Iran's response to recent geopolitical developments. Ryoo underscored the necessity of vigilant monitoring of both financial and economic situations domestically and internationally. These developments occur against the backdrop of escalating tensions in the Middle East, where Israel launched airstrikes on military ta rgets in Iran over the weekend. The strikes were in retaliation for earlier missile attacks by Tehran on Israel, raising fears of a prolonged conflict in the area, as reported by foreign media outlets.