Authorities to closely monitor FX conditions amid Mideast crisis, U.S. rate freeze | Yonhap News Agency

## Summary
OK SEOUL, March 19 (Yonhap) -- The government will use all available resources to stabilize South Korea's financial markets amid escalating tensions in the Middle East and the United States' rate freeze, Finance Minister Koo Yun-cheol said Thursday. Koo made the remarks at a meeting on macroeconomic and financial issues held amid market volatility sparked after critical energy facilities in the Middle East were attacked during the ongoing war between the U.S., Israel and Iran, while the U.S. The ministry said finance authorities agreed to continue round-the-clock monitoring of financial and foreign exchange (FX) markets, and take market stabilization measures, if needed, as uncertainties surrounding the Middle East persist. "We will closely track FX market conditions and take timely action if the movement of the Korean won deviates excessively from its underlying fundamentals," Koo said. Finance Minister Koo Yun-cheol (2nd from R) speaks at a meeting on macroeconomics and financial issues in Seoul on March 19, 2026. (Yonhap) nyway@yna.co.kr (END) Related Articles Finance chief pledges timely response to excessive FX market volatility (LEAD) Korean currency falls sharply past 1,500 won amid oil price surge Seoul shares open sharply lower on escalating Mideast crisis, U.S. rate freeze Keywords #financial market #volatility Articles with issue keywords Most Liked Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life Ex-U.S. officials voice concerns about Trump gov't 'vacating' deterrence assets from Indo-Pacific amid Iran war Police vow zero tolerance for terror threats against BTS comeback concert Most Saved Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms 16th Gwangju Biennale: You must change your life (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East (2nd LD) N.

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SEOUL, March 19 (Yonhap) -- The government will use all available resources to stabilize South Korea's financial markets amid escalating tensions in the Middle East and the United States' rate freeze, Finance Minister Koo Yun-cheol said Thursday.
Koo made the remarks at a meeting on macroeconomic and financial issues held amid market volatility sparked after critical energy facilities in the Middle East were attacked during the ongoing war between the U.S., Israel and Iran, while the U.S. Federal Reserve decided to keep its interest rates unchanged, according to the Ministry of Finance and Economy.
The ministry said finance authorities agreed to continue round-the-clock monitoring of financial and foreign exchange (FX) markets, and take market stabilization measures, if needed, as uncertainties surrounding the Middle East persist.
"We will closely track FX market conditions and take timely action if the movement of the Korean won deviates excessively from its underlying fundamentals," Koo said.
In the bond market, the government and the Bank of Korea will closely work together to implement market stabilization measures in a timely manner, including emergency buybacks and purchases of government bonds, when necessary, he added.
To prepare for worst-case scenarios, financial authorities agreed to conduct stress tests across the entire financial sector to assess South Korean markets' crisis response capabilities, while making preemptive preparations to expand the market stabilization program comprising at least 100 trillion-won (US$66.6 billion) support.
Regarding the latest U.S. rate freeze, authorities said it was an expected outcome, but uncertainties surrounding the world's largest economy's monetary policy direction still remain due to inflation concerns sparked by surging oil prices and supply chain disruptions caused by the Iran crisis, according to the ministry.
Finance Minister Koo Yun-cheol (2nd from R) speaks at a meeting on macroeconomics and financial issues in Seoul on March 19, 2026. (Yonhap)
nyway@yna.co.kr
(END)
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Authorities to closely monitor FX conditions amid Mideast crisis, U.S. rate freeze

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## Expert Analysis

### Merits
- Korea committed to expanding nuclear, missile programs; poses 'significant' threats to S.

### Areas for Consideration
- Finance Minister Koo Yun-cheol (2nd from R) speaks at a meeting on macroeconomics and financial issues in Seoul on March 19, 2026. (Yonhap) nyway@yna.co.kr (END) Related Articles Finance chief pledges timely response to excessive FX market volatility (LEAD) Korean currency falls sharply past 1,500 won amid oil price surge Seoul shares open sharply lower on escalating Mideast crisis, U.S. rate freeze Keywords #financial market #volatility Articles with issue keywords Most Liked Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life Ex-U.S. officials voice concerns about Trump gov't 'vacating' deterrence assets from Indo-Pacific amid Iran war Police vow zero tolerance for terror threats against BTS comeback concert Most Saved Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms 16th Gwangju Biennale: You must change your life (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East (2nd LD) N.

### Implications
- OK SEOUL, March 19 (Yonhap) -- The government will use all available resources to stabilize South Korea's financial markets amid escalating tensions in the Middle East and the United States' rate freeze, Finance Minister Koo Yun-cheol said Thursday.
- The ministry said finance authorities agreed to continue round-the-clock monitoring of financial and foreign exchange (FX) markets, and take market stabilization measures, if needed, as uncertainties surrounding the Middle East persist. "We will closely track FX market conditions and take timely action if the movement of the Korean won deviates excessively from its underlying fundamentals," Koo said.
- In the bond market, the government and the Bank of Korea will closely work together to implement market stabilization measures in a timely manner, including emergency buybacks and purchases of government bonds, when necessary, he added.
- Regarding the latest U.S. rate freeze, authorities said it was an expected outcome, but uncertainties surrounding the world's largest economy's monetary policy direction still remain due to inflation concerns sparked by surging oil prices and supply chain disruptions caused by the Iran crisis, according to the ministry.

### Expert Commentary
This article covers korea, market, financial topics. Notable strengths include discussion of korea. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 623.