South Korea’s Financial Supervisory Service (FSS, financial-sector regulator) is strengthening market surveillance after the U.S. Federal Reserve raised its benchmark rate by 0.25 percentage points to 3.75–4.00% on the 16th local time. The increase was the Fed’s first in 3 years and 2 months, and came as the Korea Exchange began operating an after-market session from 4 p.m. to 8 p.m. on the 14th. At a financial situation review meeting on the 17th, chaired by Governor Lee Chan-jin, the FSS assessed risks to domestic markets and financial institutions, including dispersed trading volumes, foreign capital outflows, slower AI investments, high-risk product exposure and margin trading. The regulator will monitor won-dollar exchange-rate movements, institutions’ foreign-currency liquidity, potential yen appreciation and shifts in foreign investment flows linked to possible additional Japanese rate increases. It will also review corporate bond and short-term funding markets, support capital supply to mid- and low-credit-rated companies and non-capital region businesses, and watch refinancing risks for securities firms and merchant banks. For vulnerable borrowers, the FSS plans to expand New Hope Spore mid-interest rate loans and debt restructuring programs, while urging insurers to strengthen asset-liability management (ALM, matching assets with liabilities) against possible interest-rate losses.