▲ Finance Minister Koo Yun-cheol speaks during a meeting on financial conditions held in Seoul on Jan. 29, 2026. (Yonhap)

govt-financial markets

Seoul officials say financial markets remain 'largely stable' despite uncertainties

By Kim Han-joo

SEOUL, Jan. 29 (Yonhap) -- South Korea's top financial authorities said Thursday that domestic financial markets remain "largely stable" after the U.S. Federal Reserve decided to keep its policy rate frozen, while pledging to closely monitor economic uncertainties at home and abroad.

"Domestic financial markets are largely stable," Finance Minister Koo Yun-cheol said during a meeting on financial conditions, noting that the stock market has posted stronger gains than those of major economies and that government bond yields have shown signs of gradual stabilization.

Koo, however, cited lingering global uncertainties, including concerns over a potential U.S. federal government shutdown, uncertainty surrounding U.S. tariff policies and ongoing geopolitical risks, according to the Ministry of Economy and Finance.

The government will continue to operate a 24-hour monitoring system while closely watching external conditions, Koo said.

Thursday's meeting was also attended by Bank of Korea Gov. Rhee Chang-yong, and the heads of the Financial Services Commission and the Financial Supervisory Service.

The assessment came after the U.S. Fed kept its benchmark interest rate unchanged at the 3.5-3.75 percent range, defying continued pressure from President Donald Trump to lower borrowing costs that has prompted concerns about the central bank's independence.

Participants at the meeting said the Fed's decision was in line with market expectations but noted the need to pay close attention to Chair Jerome Powell's cautious stance on future rate cuts, according to the ministry.

Powell, who also voted for the pause, described the Fed's current policy stance as "appropriate" as he explained that inflation remains "somewhat elevated" with the unemployment rate having shown "some signs of stabilization."

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