S. Korea to closely monitor impact of upcoming U.S. midterm elections

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SEOUL, Oct. 29 (Yonhap) -- South Korean financial authorities said Thursday they will closely monitor the impact of the U.S. midterm elections on financial markets and take immediate countermeasures if necessary in the event of sharp market fluctuations.

Finance Minister Lee Hyoung-il held discussions on the issue with Bank of Korea (BOK) Gov. Shin Hyun-song, Financial Services Commission Chairman Lee Eog-weon and Financial Supervisory Service Gov. Lee Chan-jin after the U.S. Federal Reserve held its benchmark interest rate steady overnight.

The Fed decided to maintain the rate in the 3.75-4.00 percent range in a 10-2 vote. The decision left the gap between the key interest rates of South Korea and the United States at up to 1 percentage point.

Finance Minister Lee Hyoung-il (R) enters the venue of a meeting held in Seoul with Bank of Korea Gov. Shin Hyun-song (L), Financial Services Commission Chairman Lee Eog-weon (2nd from L) and Financial Supervisory Service Gov. Lee Chan-jin on Oct. 29, 2026. (Yonhap)

"The decision appears to reflect the Fed's continued focus on stabilizing consumer prices while assessing the impact of September's rate hike and other economic indicators to determine its future policy direction," Lee said.

Lee noted that earnings and investment outlooks for major technology firms, along with movements in global oil prices, are fueling volatility in financial markets at home and abroad.

"We also need to monitor the composition of the U.S. Congress following the midterm elections, changes in Washington's external policies amid the shifting political landscape and their impact on markets," the finance minister added.

Lee, however, said South Korea's economic fundamentals remain sound, with its gross domestic product (GDP) advancing 1 percent on-quarter in the third quarter.

The finance minister pointed out that the U.S. elections and fiscal instability in France may also adversely affect the government bond market, noting that South Korea will work with relevant institutions to implement timely market stabilization measures, such as emergency bond buybacks, when necessary.

Finance Minister Lee Hyoung-il speaks during a meeting held in Seoul on Oct. 29, 2026. (Yonhap)

Separately, Lee said he would also discuss with the participants ways to shorten the stock settlement cycle from the current T+2 system to T+1.

"Shortening the settlement cycle is an important task as it can reduce related risks and improve the efficiency of fund management," Lee said, noting the government will gather opinions on the matter from market participants.

The BOK, meanwhile, said it will continue to keep a close eye on key market developments following the latest Fed decision.

"The Fed held its policy rate steady overnight, as expected. However, external risks persist due to lingering tensions in the Middle East, concerns over the fiscal soundness of major countries and uncertainties surrounding artificial intelligence (AI) investment," BOK Senior Deputy Gov. Kwon Min-soo said in a separate statement.

Kwon added that the central bank will closely monitor developments in financial and foreign exchange markets, with the European Central Bank and the Bank of Japan also set to make rate decisions this week.

colin@yna.co.kr (END)

S. Korea to closely monitor impact of upcoming U.S. midterm elections

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首尔，10月29日（韩联社）——韩国金融当局周四表示，他们将密切关注美国中期选举对金融市场的影响，并在市场出现剧烈波动时采取必要的应对措施。

在美国联邦储备委员会隔夜维持基准利率不变后，韩国财政部长李亨日与韩国央行行长申贤松、金融服务委员会委员长李玉元和金融监督院院长李灿镇就此问题进行了讨论。

美联储以10比2的投票结果决定维持利率在3.75%至4.00%的区间不变。这一决定使得韩国和美国的关键利率之间的差距缩小至多1个百分点。

2026年10月29日，韩国财政部长李亨日（右）进入首尔会场，与韩国央行行长申贤松（左）、金融服务委员会委员长李玉源（左二）和金融监督院院长李灿镇会面。（韩联社）

李表示：“这一决定似乎反映出美联储继续专注于稳定消费者价格，同时评估9月份加息的影响和其他经济指标，以确定其未来的政策方向。”

李指出，主要科技公司的盈利和投资前景，以及全球油价的波动，正在加剧国内外金融市场的波动。

“我们还需要密切关注中期选举后美国国会的组成情况，以及在不断变化的政治格局下华盛顿对外政策的变化及其对市场的影响，”财政部长补充道。

不过，李表示，韩国经济基本面依然良好，第三季度国内生产总值（GDP）环比增长1%。

财政部长指出，美国大选和法国财政不稳定也可能对政府债券市场产生不利影响，并表示韩国将与相关机构合作，在必要时实施及时的市场稳定措施，例如紧急债券回购。

韩国财政部长李亨日于2026年10月29日在首尔举行的一次会议上发表讲话。（韩联社）

另外，李表示，他还将与参与者讨论如何将股票结算周期从目前的 T+2 系统缩短到 T+1。

李表示：“缩短结算周期是一项重要任务，因为它可以降低相关风险并提高基金管理效率。”他还指出，政府将就此事征求市场参与者的意见。

与此同时，韩国央行表示，在美联储最新决定公布后，将继续密切关注关键市场动态。

韩国央行高级副行长权珉洙在另一份声明中表示：“美联储隔夜维持政策利率不变，符合预期。然而，由于中东地区持续紧张局势、对主要国家财政稳健性的担忧以及人工智能（AI）投资的不确定性，外部风险依然存在。”

权先生补充说，央行将密切关注金融和外汇市场的发展，欧洲央行和日本央行也将在本周做出利率决定。

colin@yna.co.kr (完)

韩国将密切关注即将到来的美国中期选举的影响