BOK Flags Financial Stability Risks as Iran War Fallout Persists

The Bank of Korea said the country’s financial system remained broadly stable in March, but warned that escalating Middle East tensions and structural vulnerabilities could amplify risks across markets.

BOK board member Lee Soohyung, who led the latest financial stability review, said financial institution resilience and solid external payment capacity have helped maintain overall stability. Still, she flagged a range of latent risks that could quickly surface under adverse conditions.