South Korea to take action to stabilize financial markets amid rising geopolitical risks

Source:Xinhua Published: 2017/8/16 13:21:59

South Korea's highest economic policymaker and top central banker agreed Wednesday to take measures, if necessary, to stabilize financial markets amid rising geopolitical risks on the Korean Peninsula.

Finance Minister Kim Dong-yeon, who doubles as deputy prime minister for economic affairs, met with Bank of Korea (BOK) Governor Lee Ju-yeol to discuss the peninsula's geopolitical risks and the relevant effect on the financial market.

The BOK governor said volatility rose last week both in the domestic and international financial markets due to geopolitical risks, noting that market anxiety could be heightened again though the volatility eased more or less.

He said South Korea's economic fundamental remained fine given the large-scale current account surplus and the significant amount of foreign currency reserves, but he noted that the BOK and the government would make active efforts to stabilize markets.

The financial minister said the government would sternly take market-stabilizing measures together with the BOK, if necessary, while closely monitoring market moves. It was agreed upon by the central banker.

Posted in: MARKETS

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