Choi Sang Mok, Acting President, Deputy Prime Minister, and Minister of Economy and Finance, stated on Thursday that “External uncertainty remains high,” emphasizing the need to monitor the financial and foreign exchange markets closely after the holiday period.
Choi made these remarks during a macroeconomic and financial issue meeting (F4 Meeting) held at the Seoul Government Complex. Bank of Korea Governor Rhee Chang Yong, Financial Services Commission Chairman Kim Byung Hwan, and Financial Supervisory Service Governor Lee Bok Hyun attended the meeting, which followed the results of the U.S. Federal Reserve’s Federal Open Market Committee (FOMC) meeting.
At the FOMC meeting, which concluded early Friday morning Korean time, the Federal Reserve unanimously decided to keep its policy rate unchanged at 4.25%–4.50% and continue reducing its balance sheet.
Choi stated, “Federal Reserve Chair Jerome Powell mentioned in a press conference that there is no need to rush additional rate adjustments, showing a cautious stance on future policy directions. The international financial market interpreted the meeting results as expected, leading to relatively limited movements in key indicators such as stock prices and interest rates.”
He further noted, “Although recent international financial volatility has eased somewhat, the likelihood of a delay in U.S. rate cuts has increased. During the holiday, major stock markets showed heightened volatility, particularly in tech stocks. Therefore, it is crucial to keep a close watch on the domestic financial and foreign exchange markets after the holidays.”
During the New Year’s holiday, the release of China’s AI model DeepSeek sparked concerns over excessive AI investment among major U.S. tech companies. As a result, tech stocks such as NVIDIA (-16.9%) and Broadcom (-17.4%) plunged sharply before partially recovering.
Choi stressed, “Uncertainty surrounding the new U.S. administration’s monetary and external policies remains high. We will maintain a heightened state of vigilance and continue operating a 24-hour joint monitoring system for financial and foreign exchange markets.”
He also announced plans to monitor U.S. policy trends and their market impact closely.
Choi emphasized the importance of defending South Korea’s national credit rating, stating, “To ensure our national credibility remains unwavering, we will hold a Korea Investment Briefing (IR) in February, led by the International Finance Cooperation Ambassador, to actively communicate our economy’s strong fundamentals to the international community. Furthermore, we will take a whole-of-government approach to the upcoming annual meetings with global credit rating agencies to ensure thorough preparations.”