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FSC Chairman’s remarks on recent financial market conditions

FSC Chairman Yim Jong-yong convened an emergency meeting of high-ranking FSC officials on February 10 to make sure policy measures are in place amid growing market concerns over the recent developments in financial markets at home and abroad.

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The missile launch is likely to have little impact on Korea’s financial market, given its calm response to North Korea’s previous provocations. However, the FSC will stary alert to any possibility of further escalation and closely monitor financial market conditions to prevent such geopolitical conditions combining with risk factors in global financial markets to weigh on our financial market.

There is also a need for investors to respond calmly to recent market uncertainties with a longer-term view, rather than overreact out of anxiety. The government will thoroughly review and fine-tune contingency plans to ensure prompt and preemptive actions against any possible crisis.

Regarding the shutdown of the Kaesong Industrial Complex, the FSC will offer swift and sufficient financial aid to the companies operating at the complex to minimize their possible losses. The companies will be granted a roll-over for their maturing loans and cuts in interest rates and fees until their financial conditions stabilize. Policy banks will provide emergency funds to companies temporarilly suffering a liquidity crunch.