ANKARA

South Korea will provide up to 100 trillion won ($68.12 billion) in emergency liquidity and other market stabilization measures to local companies hit by sweeping US tariffs, local media reported Monday.

Kim Byoung-hwan, chief of the Financial Services Commission (FSC), the country's financial regulator, reaffirmed the government support during a meeting in Seoul with the heads of the top five financial holding firms, Yonhap News Agency reported.

"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 was cited as saying by Yonhap.

The FCS, he added, will make "all-out" efforts to smoothly implement market stabilization measures worth $68.12 billion to inject liquidity any time.

The Trump administration last week announced the imposition of reciprocal tariffs on imports from most of the world, including a 25% duty on South Korean goods, which are set to take effect on Wednesday.

The move has caused stock markets to tumble worldwide, including in the US, sowing fears of a global trade war and an economic recession.

It has also left governments scrambling to devise countermeasures amid growing concerns about the impact of the tariff policy on their respective economies.

"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.

*Writing by Aamir Latif