Finance Minister Choi Sang-mok (left) speaks during the joint press conference at Press Center in Jung-gu, Seoul, Wednesday. On the right is Foreign Minister Cho Tae-yul. (Joint Press Corps via Yonhap)

Finance Minister Choi Sang-mok said economic instability and market volatility show signs of easing thanks to the swift responses by the government and the country's constitutional and economic systems.

"Economic policies are being pursued through cooperation between the government, ruling party and opposition, irrespective of the political situation, with the budget and key tax bills approved by the National Assembly on Dec. 10," Choi said.

He made the remarks during a rare joint press conference with Foreign Minister Cho Tae-yul, held for foreign media to address global concerns sparked by President Yoon Suk Yeol's abrupt and brief declaration of martial law on Dec. 3

Choi, who oversees South Korea’s economy and finances, underscored the Korean government’s top priority is upholding external credibility.

“We will maintain a 24-hour monitoring system for the financial and foreign exchange markets and strengthen foreign investment incentives, while improving understanding of Korea’s strong economic fundamentals through various initiatives such as economic briefings,” Choi said.

He also proposed a regular foreign relations ministerial meeting between the economic and foreign affairs ministries, as well as expanding the industrial competitiveness ministerial meeting to include public-private collaboration.

Regarding the rising volatility of the Korean won against the greenback, he said, "While volatility has increased due to political uncertainty and the global strength of the dollar, we expect it to ease as the situation stabilizes." He added forex authorities would proactively respond if volatility became excessive.

Choi also pledged to implement next year’s 673 trillion won budget starting Jan. 1, with the government's economic policy direction for the new year, typically announced around this time, will be revealed before year-end.

Choi reassured that South Korea will demonstrate strong determination to overcome the ongoing instability.

"South Korea has faced similar political challenges in the past, but each time, its constitutional, economic and emergency response systems have addressed political uncertainty and minimized economic impact, showing resilience," he said. "I am confident the robust economic system will ensure swift stabilization once again."

Meanwhile, Foreign Minister Cho acknowledged political turmoil triggered by Yoon's martial law declaration "hindered" the South Korean government's communication with the Trump team for the past two weeks.

"That said, it is undeniable that these events have somewhat weakened the political momentum of the previously established communication channels, and restoring that momentum will take time," Cho said. "Moreover, there are inherent limitations due to the suspension of the president, who plays a direct role in these communications."

However, Cho emphasized that under the interim leadership of Acting President Han Duck-soo, who also serves as prime minister, Seoul is "working to sustain the momentum of the previously established network to ensure there are no setbacks in policy coordination and communication with President-elect Trump’s camp and the incoming administration."

The South Korean government will "proactively" prepare for the potential resumption of nuclear talks between the United States and North Korea under a second Trump administration, including refining its roadmap and plans for North Korean issues in anticipation of such developments, Cho said Wednesday.

Cho noted that US President-elect Donald Trump's appointment of a special envoy tasked with handling North Korea signals that "the North Korean nuclear issue has not been excluded from the list of priority tasks" and "his commitment to addressing the North Korean nuclear issue seriously since taking office."

Trump named Richard Grenell, a former US ambassador to Germany and acting director of national intelligence during his first term, as his Presidential Envoy for Special Missions, which includes North Korean affairs, on Saturday.

"Since the appointment of the special envoy is being interpreted as evidence that President-elect Trump is not neglecting the North Korean nuclear issue, I believe we need to respond more proactively to this,"

"As for the North Korean nuclear issue, we will prepare plans and roadmaps before the incoming US administration takes office, which will help us brace for the possibility of the US negotiating with North Korea," Cho said.

Cho also emphasized that South Korea has not turned away from negotiations with North Korea. Instead, it was North Korea that unequivocally rejected dialogue and negotiations, resulting in the breakdown of inter-Korean communication.

"However, if an opportunity for negotiations with North Korea, including on the nuclear issue, arises in the future, we are open to all such opportunities."

When asked about the potential end of Russia's war against Ukraine, Cho remarked, "Significant time will likely be required."

"Considering the highly complex nature of the Ukraine conflict, which has unfolded over the past two to three years, I believe that even with President-elect Trump's strong commitment, bringing the war to a swift conclusion will be far from easy."

Cho stated that it is premature to define South Korea's response strategy to the Ukraine war under a second Trump administration. This strategy will consider ongoing military cooperation between Russia and North Korea, including North Korean troop deployments, battlefield developments and international efforts to end the war.

"Based on a comprehensive assessment of these dynamics, we plan to formulate and implement our response strategy accordingly."

By Ji Da-gyum (dagyumji@heraldcorp.com), Choi Ji-won (jwc@heraldcorp.com)