MINISTRY OF STRATEGY AND FINANCE
www.mosf.go.kr
Embargo: Release Date: Nov 23, 2010
Contact Information: Kim Wan-soo (02-2150-4512/ General Policy Coordination Division)
33
RDC
RISISM
ANAGEMENTM
EETINGMinister of Strategy and Finance YOON Jeung-hyun called the 33rdCrisis Management Meeting ahead of schedule after the North fired artillery barrages on the disputed West Sea border near Yeonpyeong Island and discussed the attack’s impact on Korea’s financial market.
The minister assessed that the artillery firing may increase volatility in the financial and foreign exchange markets in the short run, but Korea will recover from it in a short period as it did before when faced with similar geopolitical risks. Given Korea’s capability to absorb outside impact such as solid fiscal situation and large foreign exchange reserves, the provocation will have limited influence on the Korean economy.
The Korean government responded swiftly to the provocation, and all the economy and finance related government agencies are now in emergency operation. Indices reflecting Korea’s credit status in the international financial market such as Credit Default Swap(CDS) rates and Non-Deliverable Forward(NDF) rates will be closely monitored real-time along with foreign capital movement.
As for the real economy, market disrupting behaviors such as hoarding will be deterred and thoroughly punished.
Correct and real-time information regarding the situation will be provided to foreign press and foreign credit rating companies so that any misunderstanding can be avoided.
