Seoul: The country's financial authorities have reiterated their commitment to intervene promptly in the foreign exchange (FX) market to manage volatility effectively. This assurance was given during a meeting focused on the financial market, where Finance Minister Koo Yun-cheol emphasized enhanced market monitoring and confirmed readiness to act against any further decline of the won.

According to Yonhap News Agency, the meeting was attended by key financial figures, including Lee Eog-weon, chairman of the Financial Services Commission; Lee Chan-jin, governor of the Financial Supervisory Service; and Bank of Korea (BOK) Deputy Gov. Ryoo Sang-dai. While acknowledging the stability of the local financial market, they voiced concerns about the increasing volatility in the currency market, especially as the Korean won continues to depreciate sharply against the U.S. dollar. The won was reported to be trading at 1,478.3 to the dollar, marking a 1.5 won increase from the previous session.

In efforts to mitigate market volatility, the National Pension Service has activated a foreign-exchange swap agreement with the BOK. The financial authorities also announced plans to relax certain regulations on financial institutions' FX soundness. Specifically, Citibank Korea and Standard Chartered Bank Korea will be permitted to hold forward currency positions up to 200 percent of their paid-in capital, an increase from the current cap of 70 percent.

Additionally, the finance ministry disclosed plans to suspend stress tests on financial institutions' foreign currency liquidity levels until June of the following year. This move is part of broader efforts to stabilize the market and ensure financial institutions can navigate the current volatile environment effectively.