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South Korea financial regulator says constantly reviewing contingency plans

Tuesday, January 12, 2016 - 14:34
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South Korea's financial regulator said it was constantly reviewing its contingency plans to ensure that they reflect changes in the global economy.

[SEOUL] South Korea's financial regulator said it was constantly reviewing its contingency plans to ensure that they reflect changes in the global economy.

The South Korean stock market has been jolted by a US interest rate hike, yuan turbulence in China and North Korea.

"Some details in our contingency plans are tailored to what we saw in the 1997-1998 Asian financial crisis and the global financial crisis in 2008," Kim Yong beom, secretary general at the Financial Services Commission (FSC), told reporters on Tuesday. "China's economy has more than doubled in size since then and the yuan has moved also. We are trying to revise our plans accordingly."

Mr Kim said South Korea's economy will receive a "considerable"impact should China's economy slow further, as it accounts for a quarter of South Korea's exports.

He added that capital outflows in the wake of the US rate hike are inevitable, but the size and speed of the outflows are expected to be stable.

REUTERS