The Bank of Korea (BOK) said on Wednesday that the country's financial market is currently stable, but that it could face more difficulties as the consequences of the coronavirus pandemic may surge fully.
In its biannual report presented to the National Assembly, the BOK noted that the possibility of "mass insolvencies" could be prevented with timely financial support to companies and households. The bank predicted the national economy may contract by 1.8% on-year, but stressed that percent might either increase or decrease depending on how the crisis unravels.
South Korea recently announced a stimulus package worth $32 billion to aid its economy, and agreed with the members of Chiang Mai Initiative Multilateralization (CMIM), including Japan and China, on strengthening their liquidity program.
