Finance minister discusses market stabilization amid rising rates, Mideast uncertainty

On Friday, Korea's Finance Minister Koo Yun-cheol convened a meeting to discuss strategies for stabilizing financial markets, amid rising concerns over escalating interest rates and heightened market volatility. The discussions were prompted by renewed tensions in the Middle East, which have introduced uncertainty into global markets.

During the meeting, officials reviewed the latest developments in both domestic and international financial markets. It was noted that upward pressure on interest rates has persisted due to a surge in government bond issuance worldwide, as well as corporate bond sales by global artificial intelligence (AI) companies. Moreover, the participants highlighted the potential for increased financial market volatility, driven by rising crude oil prices resulting from the Middle East tensions.

In response to these challenges, the government pledged to safeguard vulnerable borrowers from the impact of interest rate hikes. While acknowledging that current conditions are manageable for now, the officials expressed concern that a sharp increase in interest rates could exacerbate the situation. The meeting also served as an opportunity to assess progress in reforming the country's tech-heavy industries, as well as to monitor the evolving situation closely.