{"id":2207632,"date":"2024-12-24T08:00:25","date_gmt":"2024-12-23T23:00:25","guid":{"rendered":"https:\/\/koreapro.org\/?p=2207632"},"modified":"2024-12-23T16:18:18","modified_gmt":"2024-12-23T07:18:18","slug":"liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/","title":{"rendered":"Liquidity and reforms lead South Korea\u2019s response to financial jitters"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">South Korea\u2019s finance ministry <\/span><a href=\"https:\/\/www.moef.go.kr\/nw\/nes\/detailNesDtaView.do?searchBbsId1=MOSFBBS_000000000028&amp;searchNttId1=MOSF_000000000071884&amp;menuNo=4010100\"><span style=\"font-weight: 400;\">announced<\/span><\/a><span style=\"font-weight: 400;\"> Monday stepped-up efforts to stabilize markets as global financial turbulence rattles investor confidence. The ministry stated that the Bank of Korea (BOK) is ready to inject fresh liquidity, including rapid deployment of a $2.07 billion (3 trillion won) stock fund. Officials also plan to ease foreign exchange rules by raising position limits for banks and boosting currency swap lines with the National Pension Service. Last week, the won hit a 16-year low of 1,450 won to the dollar.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Concurrently, the government is targeting small business relief with tailored financial support to address cash flow strains. Building on recent cuts to credit card fees, authorities urged companies to maintain year-end events and planned investments to help drive domestic demand.<\/span><\/p>\n<p><b>WHY IT MATTERS<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The finance ministry\u2019s measures come as South Korea grapples with mounting economic uncertainty. In November, the BOK <\/span><a href=\"https:\/\/koreapro.org\/2024\/11\/economic-slowdown-drives-bank-of-korea-to-surprise-second-rate-cut\/\"><span style=\"font-weight: 400;\">cut its GDP growth forecasts<\/span><\/a><span style=\"font-weight: 400;\"> to 2.2% for 2024 and 1.9% for 2025, citing sluggish global demand and domestic headwinds \u2014 projections made before President Yoon Suk-yeol\u2019s <\/span><a href=\"https:\/\/koreapro.org\/2024\/12\/timeline-the-swift-rise-and-fall-of-martial-law-in-south-korea\/\"><span style=\"font-weight: 400;\">martial law declaration<\/span><\/a><span style=\"font-weight: 400;\"> heightened market volatility and before the U.S. Federal Reserve <\/span><a href=\"https:\/\/koreapro.org\/2024\/12\/feds-rate-cut-sparks-market-turmoil-as-south-korea-struggles-with-weakening-won\/\"><span style=\"font-weight: 400;\">cut interest rates<\/span><\/a><span style=\"font-weight: 400;\"> by a quarter point last week while signaling slower easing in 2025.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, the ministry and BOK\u2019s liquidity injections raise inflation risks, which had <\/span><a href=\"https:\/\/koreapro.org\/2023\/07\/south-koreas-inflation-dips-below-3-for-the-first-time-in-two-years\/\"><span style=\"font-weight: 400;\">stabilized in mid-2023<\/span><\/a><span style=\"font-weight: 400;\"> after two years of price surges. While these measures aim to calm market jitters and support growth, they could undermine efforts to maintain price stability, particularly if global energy prices rebound or the won weakens further.<\/span><\/p>\n<div class=\"content-tags\"><a href=\"https:\/\/koreapro.org\/tag\/business-economy\/\"><span class=\"tag\">Business &amp; Economy<\/span><\/a><a href=\"https:\/\/koreapro.org\/tag\/domestic-politics\/\"><span class=\"tag\">Domestic Politics<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>South Korea\u2019s finance ministry announced Monday stepped-up efforts to stabilize markets as global financial turbulence rattles investor confidence. The ministry stated that the Bank of Korea (BOK) is ready to inject fresh liquidity, including rapid deployment of a $2.07 billion (3 trillion won) stock fund. Officials also plan to ease foreign exchange rules by raising [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2207633,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24,27],"class_list":["post-2207632","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefings","tag-business-economy","tag-domestic-politics"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Liquidity and reforms lead South Korea\u2019s response to financial jitters - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Liquidity and reforms lead South Korea\u2019s response to financial jitters - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"South Korea\u2019s finance ministry announced Monday stepped-up efforts to stabilize markets as global financial turbulence rattles investor confidence. 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Officials also plan to ease foreign exchange rules by raising [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/\" \/>\n<meta property=\"og:site_name\" content=\"KOREA PRO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/nknewsorg\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-12-23T23:00:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-23T07:18:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/eb-16.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1870\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"johnleenknews\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:site\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"KOREA PRO\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/\"},\"author\":{\"name\":\"johnleenknews\",\"@id\":\"https:\/\/koreapro.org\/#\/schema\/person\/b9766dba611638edc06a6e0b7078714d\"},\"headline\":\"Liquidity and reforms lead South Korea\u2019s response to financial jitters\",\"datePublished\":\"2024-12-23T23:00:25+00:00\",\"dateModified\":\"2024-12-23T07:18:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/\"},\"wordCount\":255,\"publisher\":{\"@id\":\"https:\/\/koreapro.org\/#organization\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/eb-16.png\",\"keywords\":[\"Business &amp; Economy\",\"Domestic Politics\"],\"articleSection\":[\"Briefings\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/\",\"url\":\"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/\",\"name\":\"Liquidity and reforms lead South Korea\u2019s response to financial jitters - KOREA PRO\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/eb-16.png\",\"datePublished\":\"2024-12-23T23:00:25+00:00\",\"dateModified\":\"2024-12-23T07:18:18+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/#primaryimage\",\"url\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/eb-16.png\",\"contentUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/eb-16.png\",\"width\":1870,\"height\":1000},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/koreapro.org\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Liquidity and reforms lead South Korea\u2019s response to financial jitters\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/koreapro.org\/#website\",\"url\":\"https:\/\/koreapro.org\/\",\"name\":\"KOREA PRO\",\"description\":\"Be smart about South Korea. 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