South Korea Interest Rate

The Bank of Korea announced today that it will temporarily deploy measures to boost short-term liquidity in response to market volatility triggered by the brief declaration of martial law in the country. The central bank said in a statement that it has begun purchasing additional repurchase agreements from more financial institutions to enhance market liquidity. This move aligns with Finance Minister Choi Sang-mok's earlier pledge to provide unlimited liquidity support if necessary, following President Yoon Suk Yeol's unexpected declaration of martial law on Tuesday night. Markets have shown signs of stabilization since martial law was lifted after a parliamentary vote. The central bank remains optimistic that market sentiment will improve, citing South Korea's strong economic fundamentals. Financial authorities stated they will keep a close watch on the situation and take any necessary measures, including allocating KRW 10 trillion to a stock market stabilization fund.