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FSS-emergency meeting

FSS holds emergency meeting amid oil price hike, won's depreciation

SEOUL, March 9 (Yonhap) -- The Financial Supervisory Service (FSS) held an emergency meeting Monday to assess possible risks in the finance sector as global oil prices surged and the Korean won weakened sharply amid escalating tensions in the Middle East, officials said.

The meeting, presided over by Lee Se-hoon, the first senior deputy governor of the FSS, comes as global oil prices spiked to the US$100 per barrel level, and the Korean won fell to its lowest point since the 2008 financial crisis amid an expanding conflict in the Middle East, according to the officials.

Lee is said to have asked officials to take preemptive measures in case of a prolonged conflict in the Middle East region, although fundamentals of the South Korean economy remain solid.

The FSS, in particular, plans to monitor capital movements related to leveraged bets in the stock market, including changes in margin loan balances, officials said.

South Korea's margin loan balance stood at 33.7 trillion won (US$22.7 billion) as of Thursday, marking the largest tally on record, according to the data from the Korea Financial Investment Association.

Authorities also examined various risk factors across the financial sector, such as the soundness of financial institutions, officials added.

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