Financial Committee: "10 trillion won JeungAn Fund, ready for immediate mobilization"

Preparation for mobilization of 40 trillion won ChaeAn Fund

The Financial Supervisory Service announced that it will supply liquidity without limit until the stock, bond, short-term funds, and foreign exchange markets are fully normalized. The 'JeungAn Fund' of 10 trillion won and other market stabilization measures are prepared to be mobilized at any time.

The Financial Services Commission held a 'Financial Situation Inspection Meeting' chaired by Chairman Kim Byung-hwan at 8:30 a.m. on the 4th, with the heads of financial supervisory agencies, public financial institutions, and financial associations, and discussed this.

Chairman Kim stated through a press release that day, "At the emergency economic and financial situation meeting held this morning, we decided to supply liquidity without restrictions until the stock, bond, short-term funds, and foreign exchange markets are fully normalized," adding, "In particular, we will prepare so that the JeungAn Fund of 10 trillion won and other market stabilization measures can be mobilized at any time."

He further stated, "The bond market and the money market will maintain stability by mobilizing the ChaeAn Fund of 40 trillion won and the corporate bond and CP purchase programs as much as possible," adding, "We will respond to potential risks such as margin calls following the increase in volatility through the supply of foreign exchange liquidity through securities finance."

Chairman Kim said, "Currently, the foreign exchange market and the overseas stock market are showing signs of instability," but also stated, "As much as the volatility of the financial market is likely to increase, the Financial Supervisory Service will take all possible measures to prevent the spread of instability in the financial market and ensure that the financial market operates normally and stably."

Chairman Kim emphasized, "Each institution should respond thoroughly according to the pre-prepared response plan in their respective areas," adding, "Securities-related institutions should be able to prevent price manipulation, public disclosure violations, and market disturbances such as market manipulation."

At the inspection meeting that day, in addition to Chairman Kim, Vice Chairman Kim So-young of the Financial Services Commission, Director Kwon Dae-young of the Financial Supervisory Service, and Director Lee Bok-hyun of the Financial Supervisory Service attended. Also present were the heads of various financial associations such as the Korea Deposit Insurance Corporation, the Korea Development Bank, the Korea Credit Guarantee Fund, the Korea Securities Finance Corporation, the Korea Exchange, the Korea Securities Depository, and the Korea Financial Investment Association.

Reporter Shin Min-kyung, Hankyung radio@hankyung.com