Bloomberg News

South Korea to Closely Monitor Markets and Review Contingencies

April 15, 2012

South Korea will closely monitor financial markets and review contingency plans after North Korea’s failed rocket launch brought the peninsula’s geopolitical risk back into focus, the finance ministry said today.

The launch of the long-range rocket on April 13 had “limited” impact on the South Korean financial markets and the economy, according to an e-mailed statement from the finance ministry today. South Korea will take necessary steps to prevent any sudden market changes, the statement said.

South Korea’s won rebounded and stocks rallied on April 13 after North Korea’s state media confirmed the rocket failed. The Kospi stock index rose the most in a month, while the won gained 0.5 percent, according to data compiled by Bloomberg. The Bank of Korea held the benchmark borrowing costs at 3.25 percent for the 10th straight month.

“Given the past provocations by North Korea, our financial markets tended to recover from a shock in three to seven days,” the BOK governor Kim Choong Soo told reporters in Seoul on April 13.

Officials including the vice finance minister Shin Je-Yoon, the vice chairman of the Financial Services Commission Choo Kyung Ho and Park Won Shik, the senior deputy governor from the Bank of Korea attended today’s meeting to review impact of the North’s actions, according to the statement.

Kim Jong Un’s regime celebrated the 100th anniversary of the birth of state founder Kim Il Sung today with a military parade in the capital Pyongyang.

To contact the reporter on this story: Taejin Park in Seoul tpark31@bloomberg.net

To contact the editors responsible for this story: Shelley Smith at ssmith118@bloomberg.net


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