As tensions in the Middle East escalate due to U.S. and Israeli airstrikes on Iran, the Financial Supervisory Service (FSS) in South Korea has taken proactive measures by activating a 24-hour emergency response task force. FSS Chairman Lee Chan-jin emphasized the need to focus supervisory capabilities on stabilizing the financial markets. Although he reassured that South Korea's economy and financial markets possess strong fundamentals to withstand crises, he expressed concerns that prolonged instability in the Middle East could adversely affect the domestic economy and increase volatility in foreign exchange, stock, and bond markets.

On the day of the announcement, the KOSPI index tumbled over 6% against the previous trading day, prompting the activation of trading safeguards. There was an observable rise in government bond yields and the won-dollar exchange rate, indicating a growing sense of anxiety among investors. In response, the FSS has established a specialized task force led by a senior vice chairman to monitor foreign assets, liabilities, liquidity, and market supply and demand trends for stocks and bonds. The agency plans to take coordinated stabilization measures in collaboration with relevant authorities as needed, all while remaining vigilant against market manipulation and the spread of misinformation.

The FSS has committed to maintaining its emergency response system until the situation in the Middle East stabilizes and aims to work closely with government bodies and the Bank of Korea to prevent further market turbulence. This proactive approach highlights the urgency of addressing both financial system risks and the specific challenges faced by companies operating in the Middle East, particularly those vulnerable to rising oil prices, as they prepare for potential economic fallout from the ongoing conflict.