South Korea urges action as trade fears rattle markets

South Korea’s financial regulator called for preemptive measures to safeguard market stability amid mounting volatility triggered by fears of a global trade war. Financial Supervisory Service Governor Lee Bok-hyun said that the United States’ reciprocal tariffs could spark a broader trade conflict, deepen the economic downturn, and unsettle financial markets. He urged thorough monitoring of capital markets and banks’ prudence, stressing the need to assess potential fallout and respond in advance. His remarks followed a sharp 5.5% drop in the KOSPI on Monday—its fourth straight decline—and the steepest fall in the won against the US dollar since the COVID-19 crisis. Lee said all feasible tools must be considered to ensure financial system stability and investor confidence.