SEOUL (Reuters) – South Korea’s Finance Ministry said on Friday authorities would take immediate and decisive action if needed to respond to excessive volatility in the foreign exchange market.
Authorities are ready to use the 94 trillion won ($68 billion) market stabilization program if necessary to stabilize financial markets, Finance Minister Choi Sang-mok said in a statement.
“With regard to the foreign exchange market, the minister emphasized that immediate and decisive measures will be taken against market fluctuations that deviate greatly from fundamental economic indicators,” the statement said.
The comments came after sources said Israel had attacked Iran, roiling financial markets. The Korean won weakened 1.4% against the dollar on Friday, while the stock index fell 3.1%.
Choi, who is currently in Washington, made the comments in an emergency telephone meeting with senior department officials to assess the domestic fallout from the military conflict in the Middle East.
($1 = 1,382.4200 won)