2 days Ago By Korea Bizwire
The Financial Supervisory Service. (Image courtesy of Yonhap) SEOUL, April 7 (Korea Bizwire) — South Korea’s financial regulator asked local banks on Monday to play an active role in providing funds for businesses facing difficulties due to the Donald Trump administration’s sweeping tariffs. Kim Byoung-hwan, the chief of the Financial Services Commission (FSC), made the call during a meeting with the heads of the top five financial holding firms.
They are KB, Shinhan, Hana, Woori and NH Nonghyup. “The United States’ reciprocal tariffs are feared to not only directly affect exporters but also cause difficulties for their partner firms,” Kim said. “Banks need to closely monitor market conditions and business impacts and ensure that the funds and other support they need are provided in a timely manner,” he added.
Trump vowed to impose “reciprocal” tariffs on imports from most of the world, including 25 percent duties on South Korean goods, which are set to take effect on Wednesday (U.S. time).
He also implemented a 10 percent “baseline” tariff on foreign imports starting Saturday. The scheme is feared to trigger a global trade war and potentially lead to an economic recession. The South Korean government is scrambling to devise countermeasures amid growing concerns about the impact of the tariff policy on its export-driven economy.
This AP photo shows President Donald Trump speaking during an event to announce new tariffs at the White House in Washington on April 2, 2025. (Yonhap) “Uncertainties are running high across the domestic economy, industries and financial markets due to the tariff policy. Financial holding companies and policy finance institutions should take the lead in stabilizing the market and play a more active role in providing financial support to businesses and other sectors,” Kim said.
The regulator will make all-out efforts to smoothly implement market stabilization measures worth 100 trillion won (US$68.12 billion) to minimize market volatility, he added. The FSC has launched a round-the-clock monitoring system to detect and respond to market volatility, vowing to step in, if necessary, to minimize disruptions.
(Yonhap).
