South Korea financial market remains stable despite SVB, Signature Bank collapse

South Korea’s Finance Minister Choo Kyung-ho said the country’s financial market remains stable despite the failures of two US banks. US regulators shut down Silicon Valley Bank (SVB) in the largest failure of a US bank since the 2008 financial crisis. It was followed by the collapse of the New York-based Signature Bank. Choo said the situation will have a limited impact on the South Korean market. He said that local financial institutions have different asset and debt structures compared with SVB. They have a strong liquidity and hold sufficient fundamentals to withhold a temporal shock. Choo, however, said the latest US bank collapses may lead to further uncertainties in the financial market, as global inflation has not yet been brought under control.