South Korea's political uncertainty may continue for a long time… Financial authorities make an all-out effort to stabilize the market

As political unrest in South Korea shows signs of becoming protracted, financial authorities are considering expanding the financial market inspection meetings they have been holding since the declaration of martial law to include financial holding companies and other entities on a regular basis.
The government plans to launch an all-out effort to stabilize the market by inspecting risk management and emergency crisis response systems of the five major financial holding companies.
The government is reportedly considering holding a financial market inspection meeting with the heads of the three major policy financial institutions and the president of the National Diet.
"The political shockwaves are expected to continue for some time," said Jun Rong, a market analyst at IG Asia, in a Bloomberg report.
Yeap expects political uncertainty in South Korea to continue and predicts that this uncertainty could continue to be a drag on the South Korean stock market this week.
Adarsh Sinha of Bank of America Securities said in an interview with CNBC on the 6th that the won could fluctuate significantly after the impeachment vote.
"However, it is not for political reasons, and overall our view on the won is unfavorable," he said. The Financial Services Commission will hold a meeting to review the financial markets this week to decide whether to increase the won to 1.5% or 2.5%.
Financial Services Chairman Kim Byung-hwan convened a meeting of executives on the same day and stressed, "I want you to be fully prepared to swiftly implement necessary market stabilization measures."
He added, "I urge the members of the Financial Services Commission to remember that they bear a great responsibility for the stability of financial markets and to fulfill their duties."
The Financial Supervisory Service is scheduled to hold industry-specific roundtable discussions this week.
The meeting began with a meeting with the CEO of a securities company, followed by a meeting with the Chief Risk Officer (CRO) of an insurance company on the 6th, a meeting with the Deputy Governor of a bank in charge of lending and funds on the 9th, and a meeting with the Vice Governor of a bank on the 10th.
The Financial Supervisory Service will hold a series of roundtable discussions with CEOs of savings banks on the following days. The Financial Supervisory Service has established a comprehensive contingency plan for these industries to prepare for sudden changes in market conditions based on risk factors such as liquidity and exchange rates.
The Financial Supervisory Service has determined that the financial market is still at a tolerable level despite rising political uncertainty.
On the 6th, while chairing a meeting to review the financial situation, Financial Supervisory Service Chairman Lee Bo-hyun said, "Although there remains uncertainty about the Korean economy and finances, the impact on the market has been limited in similar political situations in the past.
"The results of the financial industry's end-of-year review of its financial situation also showed a sudden imbalance in the short-term and long-term bond markets, deposits, and retirement pensions," he said.
"There have been no major fluctuations in the liquidity of financial institutions, and the liquidity of financial institutions is being managed stably," he stressed.