Seoul: The country's financial authorities have reiterated their commitment to taking prompt measures, if necessary, to address fluctuations in the foreign exchange (FX) market. This assurance was made during a meeting focused on the financial market, where Finance Minister Koo Yun-cheol emphasized the importance of enhanced market monitoring and the readiness to implement timely actions to counter the won's depreciation.

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. The officials acknowledged the stability of the local financial market but expressed concerns about increasing volatility in the currency exchange market.

The meeting's urgency stemmed from the recent sharp decline of the Korean won against the U.S. dollar. The local currency closed at 1,479.80 against the dollar on Wednesday, marking its lowest level since April 9, when it ended at 1,484.1 won.

To mitigate market volatility, the National Pension Service, a state-run pension fund, has activated a foreign-exchange swap agreement with the BOK. Additionally, financial authorities announced plans to ease certain regulations concerning the FX soundness of financial institutions.

The finance ministry further detailed that Citibank Korea and Standard Chartered Bank Korea will be permitted to take forward currency positions up to 200 percent of their paid-in capital, an increase from the current limit of 70 percent. Moreover, the ministry announced the suspension of a stress test on the foreign currency liquidity levels of financial institutions until June of the following year.