FSC Chairman Yim Jong-yong convened an emergency meeting immediately after the U.K.’s
decision to leave the EU in order to review its impact on the Korean economy and measures
to stabilize financial markets.
As it seems inevitable that the ‘Brexit’ decision would have short-term impact on financial
market, financial authorities will respond in a swift and decisive manner to developments in
financial markets. The government will monitor international and domestic financial market
conditions around the clock while strengthening communication with global IBs and foreign
The FSC/FSS will immediately form and operate a contingency response team led by the
FSC Secretary General to strengthen monitoring and respond preemptively to possible
volatility in financial markets. The government will also review its contingency plan to ensure
that the detailed action plans are executed without any delay in case of abrupt financial
In particular, the government will closely monitor domestic banks’ foreign currency liquidity
conditions and make sure that they are well prepared to respond to market developments.
The government views that the Korean economy is resilient enough to withstand possible
impact of the Brexit decision on global financial market, given its strong economic
fundamentals and financial soundness.
* short-term external debt / total external debt:
43.1% (2009), 34.9% (2011), 26.4% (2013), 27.4%(2015)
* short-term external debt / total foreign reserve:
52.0% (2009), 45.6% (2011), 32.3% (2013), 29.1% (2015)
* current account surplus/ GDP:
3.7% (2009), 1.6% (2011), 6.2% (2013), 7.7% (2015)
We ask investors not to overreact to temporary increase in financial market volatility and
remain calm to future market developments from a mid-to long-term perspective with
confidence in the Korean economy’s fundamentals.