Seoul: A new policy consultation council of the country's top finance officials kicked off Wednesday in a bid to bolster cooperation among economy-related authorities in devising macroeconomic policies amid heightening global uncertainties, government officials said. The trilateral council, comprising Finance Minister Koo Yun-cheol, Budget Minister Park Hong-keun, and Financial Services Commission Chairman Lee Eog-weon, held its inaugural meeting and discussed possible responses to geopolitical turmoil in the Middle East as its first item, according to the officials.

According to Yonhap News Agency, the council has been established to help authorities find an optimal policy mix and create a close coordination system amid rapid shifts in macroeconomic conditions surrounding South Korea. In Wednesday's meeting, the finance chiefs agreed that swift parliamentary approval and execution of a 26.2 trillion-won (US$17.4 billion) supplementary budget, proposed Tuesday by the government, are needed to minimize the impact of the Iran war on the South Korean economy and financial markets, as well as the livelihoods of vulnerable households.

Regarding the recent volatility in the foreign exchange (FX) market, Koo remarked that "excessive depreciation of the Korean won that deviates from underlying fundamentals does not serve our economy well." On Tuesday, the local currency closed at 1,530.1 won against the U.S. dollar, sliding 14.4 won from the previous session to the lowest level since March 9, 2009, when the country was grappling with the global financial crisis.

Koo emphasized that the financial authorities will preemptively prepare all available policy tools with the "worst-case scenario" in mind with regard to the Mideast crisis. The macroeconomic policy consultation council is set to hold regular meetings every month.