US President Donald Trump speaks to reporters while in flight on Monday. (AFP-Yonhap)
US President Donald Trump speaks to reporters while in flight on Monday. (AFP-Yonhap)

South Korea's financial regulator said Monday that authorities will be fully prepared to provide up to 100 trillion won ($68.12 billion) in emergency liquidity and other market stabilization measures to companies hit by the Donald Trump administration's sweeping tariffs.

Kim Byoung-hwan, the chief of the Financial Services Commission, reaffirmed the government support measures during a meeting with the heads of the top five financial holding firms -- KB, Shinhan, Hana, Woori and NH Nonghyup -- where he asked for their active role in providing much-needed funds to businesses.

"Uncertainties are running high across the domestic economy, industries and financial markets due to the tariff policy. Financial holding companies and policy finance institutions should take the lead in stabilizing the market and play a more active role in providing financial support to businesses and other sectors," Kim said.

The regulator will make all-out efforts to smoothly implement market stabilization measures worth 100 trillion won to inject liquidity any time, he added.

The market stabilization program includes a 40 trillion-won fund aimed at ensuring stability in the bond market, along with approximately 60 trillion won allocated for project financing and construction-related sectors.

Trump vowed to impose "reciprocal" tariffs on imports from most of the world, including 25 percent duties on South Korean goods, which are set to take effect on Wednesday. He also implemented a 10 percent "baseline" tariff on foreign imports starting Saturday.

The scheme is feared to trigger a global trade war and potentially lead to an economic recession. The South Korean government is scrambling to devise countermeasures amid growing concerns about the impact of the tariff policy on its export-driven economy.

"The United States' reciprocal tariffs are feared to not only directly affect exporters but also cause difficulties for their partner firms. Banks need to closely monitor market conditions and business impacts and ensure that the funds and other support they need are provided in a timely manner," Kim said.

The FSC has launched a round-the-clock monitoring system to detect and respond to market volatility, vowing to step in, if necessary, to minimize disruptions.

The regulator also pledged to accelerate efforts to establish a 50 trillion-won fund for advanced strategic industries, aimed at responding to the global trade war and supporting the sustainable growth of the domestic economy. (Yonhap)