The financial regulator held an emergency meeting on Monday amid heightened tensions in the Middle East following Iran’s massive drone and missile strike against Israel. 

The Financial Services Commission(FSC) convened the meeting to check the effect of the attack on the market and discuss possible responses. 

The FSC assessed that the Middle East crisis is unlikely to have a direct impact on the domestic financial market in the short term, citing local financial institutions’ limited exposure to Iran and Israel. 

As of the end of 2023, South Korean financial firms’ direct exposure to Iran stood at one million dollars, while their exposure to Israel marked 290 million dollars. 

However, the FSC noted the need to enhance the monitoring of the Middle East situation and domestic and international financial markets. 

Presiding over the meeting, FSC chairman Kim Joo-hyun said that the local financial market seems to be remaining stable, but it’s still facing potential risk factors, citing the growing uncertainties related to U.S. fiscal policy and increasing geopolitical risks in the Middle East. 

The FSC chief then called for a thorough readiness posture for market stabilization, while urging market participants not to be overly concerned.