“Possibility of increasing volatility in domestic and foreign financial markets due to Omicron mutation”

Lee Won Lee, Deputy Minister of Strategy and Finance. Provided by the Ministry of Strategy and Finance

On the 29th, 1st Vice Minister of Strategy and Finance Lee Won Lee said, “There is a possibility that the volatility of domestic and foreign financial markets will increase due to the occurrence of omicron mutations.”

Vice Minister Lee made this statement while holding a macroeconomic and financial inspection meeting in which economic and financial departments within the Ministry of Strategy and Finance and the International Financial Center participated on the same day to check domestic and foreign financial market trends and to discuss future countermeasures due to the outbreak of the Omicron mutant virus.

“Until there is a clear analysis on the spread of Omicron mutation and risks, it is difficult to rule out the possibility that Omicron will act as an uncertainty factor that can increase the volatility of domestic and foreign financial markets in the short term due to the lack of information,” he said. did. However, “the resilience of our financial market that appeared during the past re-proliferation period, the improvement of the quarantine and medical system in response to the coronavirus at the global level, and the increased capacity to cushion the impact of the corona spread in terms of economic activities such as non-face-to-face work and the spread of online consumption, etc. needs to be considered more comprehensively and calmly.”

Vice Minister Lee explained that the Korean financial market has shown resilience to recover from shocks within a relatively short period of time even in the case of re-spreading of COVID-19 in the past. After a fall in stock prices and an increase in the exchange rate in August of last year (second spread) and November of last year – February of this year (third spread), the stock recovered to its pre-shock level within one to two weeks.

In addition, the global quarantine and medical response system has been continuously expanded and strengthened, and the adaptability to cushion the impact of COVID-19 has increased due to non-face-to-face work and the spread of online consumption.

Vice Minister Lee said, “We will operate a 24-hour monitoring system for the mutant virus and domestic and foreign financial markets while closely examining the impact of the Omicron mutation on the economy and financial markets. “In particular, we will check the measures for market stabilization by financial market and situation more thoroughly, and, if necessary, take a preemptive and active response together with related organizations,” he said.

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