December 12, 2024

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Deputy Prime Minister and Finance Minister Choi Sang-mok holds a video conference with US Treasury Secretary Janet Yellen at the Government Complex Seoul, Tuesday. (Ministry of Economy and Finance)

Finance Minister Choi Sang-mok held a video conference with US Treasury Secretary Janet Yellen Tuesday to reaffirm the two countries' bilateral relationship amid political turmoil grappling South Korea’s capital market, according to the ministry.

The meeting, requested by the Korean side, lasted around 25 minutes, the Ministry of Economy and Finance said through a press release on the following day. The meeting follows Choi’s letter sent to Yellen on Dec. 4, in the aftermath of the martial law fiasco led by President Yoon Suk Yeol.

"Korea's democracy is soundly in place," Choi said in the meeting, according to the ministry. "With public security and order maintained, all national systems, including the politics and the economy, are under normal operation.”

"The economic system remains strong and the emergency response system has been activated stably," Choi said, adding he will lead the preemptive response to volatility in the financial and foreign exchange markets.

According to the statement provided by the US Treasury Department, Yellen "expressed appreciation for the close communication” between the Korean Finance Ministry and the US Treasury Department, following the recent events here.

Yellen also reaffirmed the "strong ties" between the two countries, which were built upon shared democratic values, and expressed her hope for continued bilateral cooperation.

The meeting came on the back of concerns voiced by US authorities over the country's recent political strife. US Deputy Secretary of State Kurt Campbell said President Yoon's declaration of martial law was "badly misjudged," and US Defense Secretary Lloyd Austin canceled his visit to Seoul.

In recent days, the Korean government has been keen to strengthen communication with foreign partners to ease concerns. The Finance Minister sent out emergency letters to his foreign counterparts, including Yellen, foreign investors and global financial institutions, to reassure the government’s willingness to operate economic policy soundly.

On Wednesday, Choi and the chiefs of the Bank of Korea, Financial Services Commission and Financial Supervisory Service, held a meeting to discuss the country's macroeconomic environment. The finance policymakers have been holding a stream of meetings as they seek to maintain order in the financial market, which has been experiencing escalated volatility due to the country’s political turmoil.

“The attendees of the meeting agreed that the stock market has made a partial recovery with the buying trend from institutional and foreign investors, yet the uncertainty remains large,” the Finance Ministry said in a statement.

However, considering that uncertainty continues to loom large, the attendees agreed to "sufficiently respond" to turn around the market sentiment in case of excessive market volatility.

By Im Eun-byel (silverstar@heraldcorp.com)