The Bank of Korea has heightened its response level while closely monitoring financial market repercussions from U.S. and Israeli airstrikes on Iran.
According to the central bank on the 1st, Governor Rhee Chang-yong chaired an emergency situation assessment meeting the previous evening. He discussed response measures for various scenarios depending on how the situation unfolds. Governor Rhee instructed relevant departments to establish a 24-hour monitoring system to enable immediate response to heightened market volatility.
The BOK has accordingly formed a "Middle East Situation Task Force" to monitor financial and foreign exchange market trends in real time. The central bank plans to implement market stabilization measures in a timely manner if necessary.
Markets are watching for the possibility that escalating Middle East risks could lead to surging international oil prices, strengthening global risk-off sentiment, and increased won-dollar exchange rate volatility.