Bank of Korea vows to keep markets stable after Yoon’s impeachment (Reuters)

SEOUL (Reuters) – South Korea’s central bank vowed on Sunday to keep the market stable after South Korean President Jun Suk-yeol was ousted over his brief imposition of a state of emergency.

The Bank of Korea said in a statement that it will use all available policy instruments in cooperation with the government to respond and prevent any escalation of volatility in financial and foreign exchange markets.

The bank said it is necessary to react more actively to the economic impact than in previous periods of impeachment of the president due to increased challenges in external conditions, such as increased uncertainty in the trade environment and increased global competition in key industries.

South Korea’s financial regulator said in a statement that financial markets are expected to stabilize as recent political events are considered temporary shocks, but will expand market stabilization funds if necessary.