Authorities "US Tariff Shock... 100 Trillion Won for Market Stabilization"

Financial Leaders Gathered in One Place

Kim Byung-hwan "Timely Support for Businesses"

Financial authorities are set to implement a market stabilization program worth 100 trillion won in response to the US's reciprocal tariffs. They are also pushing for the formation of a public-private policy council to relay the voices of on-site businesses to the government in real-time.

Kim Byung-hwan, Chairman of the Financial Services Commission, announced this plan during a financial situation review meeting held on the 7th at the Government Complex Seoul with Lee Bok-hyun, Governor of the Financial Supervisory Service, and the chairmen of the five major financial holding companies, including KB, Shinhan, Hana, Woori, and NongHyup, as well as heads of policy financial institutions.

Chairman Kim assessed, "In a situation where economic, industrial, and financial market uncertainties are very high due to the US's reciprocal tariffs, it is crucial to manage our economy and financial markets stably for the next two months until the new government takes office."

He stated that financial authorities would devote all efforts to preparing and executing a market stabilization program worth 100 trillion won, which includes liquidity supply measures as needed according to market conditions, and that existing policies would be pursued without disruption. The market stabilization program consists of a 40 trillion won bond market stabilization fund, a 10 trillion won securities market stabilization fund, and support for real estate project financing (PF) and the construction industry.

Financial authorities plan to accelerate the creation of a 50 trillion won advanced strategic industry fund, which is being pursued to counter trade wars and support the sustainable growth of key companies.

Chairman Kim urged participants, "Financial holding companies and policy financial institutions should play a more active role in stabilizing the financial market and supporting the real sector, including businesses." He added, "Please closely monitor the situations and impacts on trading companies on-site and ensure that necessary funding and support are provided in a timely manner."

Financial authorities are also pushing for the formation of a public-private financial policy council to more precisely analyze the ripple effects of international situations, such as US tariff policies, on domestic companies and the economy. The council, which will be composed in various forms from working-level officials to executives, will serve as a communication channel between the field and the government. Chairman Kim emphasized, "If private financial companies and policy financial institutions present problems and improvement ideas encountered on-site, we will promptly review and actively reflect them in policy."

Reporter Hyunwoo Kang hkang@hankyung.com