Seoul: The head of South Korea's financial regulator vowed Thursday to take preemptive measures to ensure financial stability amid a slew of headwinds, such as high rates and policy shifts by the Trump administration. Lee Bok-hyun, governor of the Financial Supervisory Service (FSS), also stressed the need to further develop and promote the local financial market, making it work in tune with the global standards.
According to Yonhap News Agency, Lee Bok-hyun highlighted the various uncertainties facing South Korea's economy and financial markets during his opening remarks at the FSS SPEAKS 2025, an annual forum aimed at enhancing communication with foreign financial firms. The forum saw the attendance of approximately 230 officials and executives from foreign embassies and financial firms, including ambassadors from China, Britain, Japan, Italy, the Netherlands, and Switzerland.
The FSS chief emphasized that the Financial Supervisory Service is preparing for uncertainties both domestically and internationally. He stated that the agency would focus on financial stability by managing household debt levels and supervising the soundness of financial firms. Additionally, Lee announced efforts for market advancement through the revision and updating of regulations concerning initial public offerings (IPOs) and other systems.
Lee also mentioned the agency's plans to thoroughly inspect all aspects ahead of the resumption of stock short selling next week. The country had imposed a temporary ban on stock short selling in November 2023 after several global investment banks were found to have committed naked short selling violations. The suspension is scheduled to be lifted on Monday.