South Korea's Finance Ministry Response to Impeachment

SEOUL (Reuters) – South Korea's finance ministry vowed on Sunday to continue to swiftly deploy market stabilising measures as needed to support the economy after President Yoon Suk Yeol was impeached over his brief imposition of martial law.

The ministry stated it will actively communicate with parliament to maintain economic stability, adding that it plans to announce its biannual policy plan before the end of this year.

The leader of the main opposition Democratic Party, Lee Jae-myung, called for a National Stability Council for Governance, comprising the government and parliament to discuss finance, economy, and public livelihoods.

The Bank of Korea indicated that it would utilize all available policy instruments alongside the government to address and prevent any escalation of volatility in financial and foreign exchange markets.

The bank emphasized the need for a more active response to economic impacts than in past presidential impeachment instances, due to increased external challenges, such as greater uncertainty in the trading environment and intensified global competition in key industries.

Additionally, South Korea's financial regulator stated that financial markets are expected to stabilise as recent political events are viewed as temporary shocks; however, it will expand market-stabilising funds if necessary.