SEOUL, Jan. 12 (Korea Bizwire) – South Korea’s top financial regulator warned of greater financial market volatility on Tuesday, vowing to properly deal with it with a sense of alertness in order to ensure market stability.
The local market has suffered a setback, facing a double whammy of China’s stock market rout amid concerns over its economic slowdown and resurfaced geopolitical risks over North Korea’s fourth nuclear test.
“Since the beginning of this year, a variety of external uncertainties have rendered the local market volatile,” Financial Services Commission Chairman Yim Jong-yong said at a meeting with experts, held to hear their opinions on the government’s reform measures for the new year.
“Though the aftereffects of unfavorable global factors on the local market will be limited, we will be cautious and on alert while heeding chances of further increased volatility,” he added.
A pangovernmental task force will keep tabs on changing circumstances around the clock, and the financial authorities will have close communications with investors at home and abroad, the regulator said.
China’s stock crash and other external negatives pounded the local financial market on Monday. The benchmark Korea Composite Stock Price Index (KOSPI) plunged some 1.2 percent, with the local currency nosediving to the lowest level against the U.S. dollar in more than five years.’