Regulator says there is caution over rising bond yields, volatility in foreign exchange rates

20251221 South Korea won

South Korea’s central bank announced temporary measures on Dec. 19 to boost the supply of dollars in the onshore foreign exchange market. © Reuters

SEOUL (Reuters) — South Korea is ready to take preemptive measures to stabilise financial markets at any time if needed, Financial Services Commission Chairman Lee Eog-weon said in a television interview on Sunday.

There is caution over rising bond yields and volatility in foreign exchange rates, Lee said, adding that South Korea has no significant problems with the soundness of its financial system and its ability to cope with a crisis.

On Friday, South Korea’s central bank announced temporary measures aimed at boosting dollar supply in the onshore foreign exchange market as the won’s persistent weakness spurred concerns over inflation.