Key facts
- South Korean financial authorities will monitor U.S. midterm election impact on markets.
- Authorities will take countermeasures if necessary for sharp market fluctuations.
- The U.S. Federal Reserve maintained its benchmark interest rate at 3.75-4.00 percent.
- The rate decision leaves a gap of up to 1 percentage point between South Korean and U.S. key rates.
- South Korea's GDP advanced 1 percent on-quarter in the third quarter.
- Discussions included shortening the stock settlement cycle to T+1.
South Korean financial authorities stated on October 29, 2026, that they will closely monitor the impact of the upcoming U.S. midterm elections on financial markets and are prepared to take immediate countermeasures if necessary. Finance Minister Lee Hyoung-il discussed the issue with the heads of the Bank of Korea and financial regulatory bodies following the U.S. Federal Reserve's decision to maintain its benchmark interest rate. The Fed's decision kept the interest rate gap between South Korea and the U.S. at up to 1 percentage point. Lee noted that market volatility is being fueled by earnings outlooks for tech firms and oil prices, and emphasized the need to watch the U.S. political landscape and its policy implications. He also mentioned that South Korea's economic fundamentals remain sound, with GDP growing 1 percent on-quarter in the third quarter. Discussions also covered potentially shortening the stock settlement cycle to T+1.