Bank of Korea vows to keep markets stable after Yoon impeachment

SEOUL (Reuters) -South Korea’s central bank vowed on Sunday vows to keep markets stable after South Korean President Yoon Suk Yeol was impeached over his brief imposition of martial law.

The Bank of Korea said in a statement that it would use all available policy instruments in conjunction with the government to respond to and avert any escalation of volatility in financial and foreign exchange markets.

The bank said it is necessary to respond more actively to the economic impact than in past presidential impeachment periods due to heightened challenges in external conditions, such as increased uncertainty in the trading environment and intensified global competition in key industries.

South Korea’s financial regulator said in a statement that financial markets are expected to stabilise as recent political events are considered temporary shocks, but it will expand market-stabilising funds if needed.