South Korean President Yoon vows to deal with economic shocks

South Korean President Yoon Suk-yeol has promised to appropriately deal with economic shocks in one of the most direct indications about measures to stop the spread of a sense of panic in financial markets.

The comments on Thursday came as the country’s stock and bond prices jumped while the won currency’s value rebounded after a simultaneous sell-off on Wednesday, helped by a slew of steps announced in several countries overnight.

“(The government) will do the cushioning effort well so the various economic shocks do not cause difficulties for people’s livelihood,” Yoon told reporters while arriving at his office.

It was one of the clearest signs from Yoon about the government’s intention to keep stability in local markets, which analysts said have been fluctuating excessively in response to global issues in recent weeks.

“In various measures, the responses of the local markets were excessive given that shocks are mostly global,” said Koh Tae-bong, the head of research and HI Investment & Securities.

He pointed out the country’s government bond market saw some of the biggest fluctuations in the world in recent days, notably since the end of the US Federal Reserve’s policy meeting last week.